Nordstrom (NYSE:JWN) is a Seattle-based fashion retailer that provides apparels, shoes, beauty, accessories, and home goods for women, men, young adults, and children. Clothing retailers have faced a challenging environment as consumers have been squeezed by the dual pressures of rising inflation and aggressive interest rate hikes in 2022 and 2023. Shares of Nordstrom have increased 4% month-over-month as of close on Wednesday, November 22. Thes clothing retail stock is still down 9.8% so far in 2023.
This company released its third quarter (Q3) fiscal 2023 earnings after markets closed on November 21. Nordstrom reported total revenues of $3.3 billion in the quarter. Meanwhile, net sales decreased 6.8% compared to the previous year. Gross merchandise volume (GMV) also fell 7.1%, while Q3 net sales included a 270 basis point negative impact from the wind-down of Canadian operations. Digital sales fell 11% compared to Q3 2022, as the elimination of store fulfillment for Nordstrom Rack digital orders during Q3 2022 negatively impacted by roughly 100 basis points.
EBIT stands for earnings before interest and taxes. Nordstrom reported adjusted EBIT of $77 million in Q3 2023 – up from $73 million in the previous year. The company finished the quarter with $1.2 billion in available liquidity, including $375 million in cash. Nordstrom stock is still trading in favourable value territory compared to its industry peers and offers a quarterly dividend of $0.19 per share. That represents a solid 5.3% yield.
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