The Retailer Raises Its Forecast for Revenue Growth After Surpassing Expectations for the Holiday Season
Nordstrom Inc. has published favorable sales results for the holiday season, surpassing both its own projections and industry forecasts. The company saw a rise in both comparable store and total sales for the holiday period; the former going up by 5.8 percent and the latter by 4.9 percent for the nine weeks leading to January 4th, compared to the same period one year ago.
The net sales for the Nordstrom banner registered a growth of 3.7 percent alongside an increase in comparable sales of 6.5 percent. As for the Nordstrom Rack banner, net sales went up 7.4 percent and comparable sales climbed 4.3 percent.
“As a result of our efforts to remain competitive in the promotional environment and the strength of our offering, our holiday sales in November and December exceeded the expectations we shared during our most recent earnings call,” stated Erik Nordstrom, CEO of Nordstrom Inc., on Friday. “For the full year, we’re raising our top line outlook and reaffirming our profitability guidance.”
Based on the holiday season returns, Nordstrom anticipates revenue growth, encompassing both retail sales and credit card revenues, to sit between 1.5 percent and 2.5 percent versus 53-week fiscal 2023. This projection factors in an estimated 135 basis point adverse impact stemming from the additional week in the fiscal calendar. In contrast, the company previously predicted a flat to 1 percent sales lift. Furthermore, Nordstrom expects the growth of comparable sales to range between 2.5 to 3.5 percent versus 52 weeks in fiscal 2023, amending its earlier growth forecast of 1 to 2 percent.
In the company’s third-quarter reports, Nordstrom showed a 4.6 percent growth in net sales to $3.35 billion, and a 4 percent increase in comparable sales.
Fourth-quarter and full-year 2024 financial results are slated to be announced after the close of financial markets on March 4.
Recent success has crowned the company’s strategic initiatives such as the expansion of the Rack off-price chain, enhancing the selection of the Rack selection to include more high-quality brands, propelling the digital growth, and securing comp value at the Nordstrom department store.
On December 23rd, Nordstrom declared a definitive agreement, stating that the Nordstrom family and Mexican retail firm El Puerto de Liverpool will procure all outstanding shares of Nordstrom not beneficially owned by the Nordstrom family and Liverpool. This all-cash transaction, totaling approximately $6.25 billion, will pay Nordstrom common shareholders $24.25 in cash for each share of common stock they possess. The transaction is set to be finalized in the first half of 2025, subject to standard regulatory requirements and other conditions.
Nordstrom Inc. is managed by Erik and Pete Nordstrom, holding the posts of CEO and President and Chief Brand Officer respectively, and their cousin Jamie Nordstrom, who operates as the Chief Merchandising Officer.