Nordstrom posted fourth-quarter earnings and sales gains as the company’s off-price Rack locations turned in a strong top-line performance.
Net earnings for the 14-week fourth quarter were $134 million, or 82 cents per diluted share, versus $119 million, or 74 cents per diluted share, in the year-earlier period. Adjusted for one-time events, earnings per diluted share were 96 cents versus 74 cents in the year-prior quarter.
Nordstrom topped a MarketBeat-published analyst consensus estimate for earnings of 90 cents per adjusted diluted share and revenues of $4.38 billion.
Net sales were $4.29 billion versus $4.2 billion in the year-before quarter, the company stated, while revenue was $4.42 billion versus $4.32 billion. Nordstrom department store sales were $2.87 billion versus $2.96 billion while Nordstrom Rack sales were $1.43 billion versus $1.25 billion in the year-previous period. Nordstrom opened or relocated 20 Rack locations in fiscal 2023 and closed one department store. The company closed all six of its department stores and all seven of its Rack locations in Canada during the previous fiscal year.
Full year net earnings were $134 million, or 82 cents per diluted share, versus $245 million, or $1.51 per diluted share, in the year earlier. Adjusted earnings were $2.12 per diluted share versus $1.69 per diluted share in the year prior.
Net sales were $14.22 billion versus $15.09 billion, in the year before, Nordstrom reported, while revenue was $14.69 billion versus $15.53 billion.
“We delivered on our 2023 guidance and are confident in our expectations for continued sales improvement and sustained profitability in 2024,” said Erik Nordstrom, company CEO. “We’re laser-focused on efforts we know will drive growth and profitability across the business over the next few years, including new Rack store openings, Nordstrom digital growth and increasing comp store sales. We have a strong team dedicated to building on our heritage of service, and we look forward to helping our customers feel good and look their best in the year ahead.”
Company President and Chief Brand Officer Pete Nordstrom added, “In 2023, we continued to make progress against the priorities we identified at the outset of the year to improve the customer experience and drive better financial results. Across both banners, we improved our merchandise assortment by effectively managing our inventory levels and investing in the products and brands we know our customers respond to. This year, we’ll build on that progress in merchandising and other green shoots across our business as we focus our efforts on our refreshed 2024 priorities.”
