Nordstrom’s (JWN) stock is up about 10% today after the retailer posted strong financial results
and raised its forecast for earnings and revenue over the coming year.
Nordstrom’s earnings and bullish outlook are the latest sign that affluent shoppers will keep
spending money even as inflation rises.
Nordstrom said that its net sales increased 19% to $3.47 billion U.S. in its fiscal quarter ended
April 30. That was above analysts’ average estimate of $3.27 billion U.S. Sales at both
Nordstrom and its off-price Rack business were stronger than what analysts had expected.
Nordstrom also said that it sees revenue growth, including credit-card sales, of 6% to 8% this
year, an upgrade of a full percentage point from the company’s previous March forecast.
The results show the divergence among retailers catering to high-end clients and those selling
to mass-market consumers. In recent weeks, a growing array of companies have downgraded
their expectations for the year as higher costs eat into profits and inflation erodes the
purchasing power of lower income shoppers.
Nordstrom also raised its forecast for earnings per share (EPS) this year to a range of $3.38
U.S. to $3.68 U.S., excluding the impact of share repurchases.
The company also announced it will become a retail partner of Allbirds (BIRD), the sneaker
start-up that went public last year. Nordstrom will offer Allbirds products in select stores starting
on June 1, with plans to sell them online later in the year.
Nordstrom shares rose as much as 12% immediately after its earnings were announced before
moderating in extended trading. Before today, the stock had declined 14% this year to change
hands at $20.68 U.S. a share.
