Nordstrom Inc (JWN) Posts Mixed Fourth Quarter Results Amidst Strategic Growth Efforts
Net Earnings: $134 million, or $0.82 EPS for Q4; $134 million for FY 2023.
Adjusted EPS: $0.96 for Q4, excluding supply chain asset impairment; $2.12 for FY 2023, excluding charges.
Net Sales: Increased by 2.2% in Q4; decreased by 5.4% for FY 2023.
Gross Profit Margin: Improved by 125 basis points to 34.4% in Q4.
Digital Sales: Decreased by 1.7% in Q4, accounting for 38% of total sales.
Store Count: Nordstrom Rack U.S. increased to 258 from 241 in the previous year.
Fiscal 2024 Outlook: Revenue expected to decline by 2.0% to grow by 1.0%; EPS forecasted at $1.65 to $2.05.
On March 5, 2024, Nordstrom Inc (NYSE:JWN) released its 8-K filing, detailing the financial results for the fourth quarter of 2023 and the full fiscal year. The fashion retailer, known for its mix of department and off-price stores, reported net earnings of $134 million, or $0.82 per diluted share, for the 14-week quarter ended February 3, 2024. Adjusted for certain charges, the company's earnings per share stood at $0.96. Over the fiscal year, Nordstrom saw a net earnings total of $134 million and an adjusted EPS of $2.12.
Nordstrom's total net sales saw a modest increase of 2.2% in the fourth quarter compared to the same period in the previous year, which includes the impact of an additional week in the fiscal calendar. However, the company's full-year revenue, including retail sales and credit card revenues, declined by 5.4%. Nordstrom Rack, the company's off-price banner, displayed a robust performance with a 14.6% increase in net sales during the quarter.
The company's gross profit margin improved, driven by lower markdowns and buying and occupancy costs, along with leverage on higher sales. However, digital sales, which represent a significant portion of the company's business model, decreased by 1.7% in the fourth quarter. Nordstrom Rack's physical footprint expanded, with the U.S. store count rising to 258 from 241 the previous year.
Looking ahead, Nordstrom provided a fiscal 2024 outlook that anticipates a revenue range between a 2.0% decline and a 1.0% growth compared to the 53-week fiscal year of 2023. The company also forecasts an earnings per share range of $1.65 to $2.05, excluding any impact from share repurchase activity.
Despite the mixed results, CEO Erik Nordstrom expressed confidence in the company's strategic initiatives aimed at driving growth and profitability, including new Rack store openings and digital expansion. The company's focus on improving customer experience and merchandise assortment was echoed by President Pete Nordstrom, who highlighted the progress made in these areas.
As Nordstrom Inc (NYSE:JWN) navigates the competitive retail landscape, investors and stakeholders will be closely monitoring the company's ability to sustain profitability and capitalize on its growth strategies in the coming fiscal year.
Explore the complete 8-K earnings release (here) from Nordstrom Inc for further details.
This article first appeared on GuruFocus.
