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Nordstrom posts Q3 loss, sales decline

By Prachi Singh

23 Nov 2022

Business

Image: Nordstrom

Nordstrom, Inc. reported a third quarter net loss of 20 million dollars and loss per diluted share of 13 cents for the quarter ended October 29, 2022 and adjusted earnings per diluted share of 20 cents.

For the third quarter, net sales decreased 2.9 percent versus the same period in fiscal 2021 and gross merchandise value decreased 2.5 percent.

During the quarter, Nordstrom banner net sales decreased 3.4 percent, and GMV decreased 2.9 percent. Net sales for Nordstrom Rack decreased 1.9 percent.

Commenting on the third quarter trading, Erik Nordstrom, chief executive officer of Nordstrom, Inc. said: "When customer demand decelerated in late June, we took action to align inventory and expenses with the changing trends, which has prepared us to navigate the current macroeconomic environment."

The company said core categories, including men's and women's apparel, shoes and designer, had the strongest growth versus 2021, as customers continued to shop for occasions, travel, work and holidays.

"This holiday season we are delivering a fresh, relevant assortment, which supports our goal of being the go-to destination for gifting, and preparing for the moments that matter most to customers," added Pete Nordstrom, president and chief brand officer of Nordstrom, Inc.

The company’s board of directors declared a quarterly cash dividend of 19 cents per share to be paid to shareholders of record at the close of business on November 29, 2022, payable on December 14, 2022.

The company expects to report revenue growth, including retail sales and credit card revenues, of 5 to 7 percent for the full year, EBIT margin, as percent of sales of 4.1 to 4.4 percent, adjusted EBIT margin of 4.3 to 4.7 percent, EPS of 2.13 dollars to 2.43 dollars and adjusted EPS of 2.30 dollars to 2.60 dollars.

NORDSTROM
Nordstrom Rack