Nordstrom Q1 profits narrow, reiterates FY adjusted EPS outlook

Nordstrom has reaffirmed its full-year revenue and adjusted EPS outlook despite weaker sales in the first quarter as the company was impacted by falling consumer demand and the impact of the wind-down of its Canadian operations.

Total net sales at the US department store chain fell 11.6 percent to 3.06 billion dollars in the quarter ended April 29, which included one month of sales from Canadian operations compared with a full quarter of sales the prior year.

Nordstrom announced in March the decision to discontinue its Canadian operations in order to streamline the company and refocus on its core US business.

The company swung to a net loss of 205 million dollars in the first quarter from a profit of 20 million dollars a year earlier.

Full-year outlook

Nordstrom reaffirmed its FY23 revenue and adjusted earnings outlook. It expects a revenue decline of between 4 percent and 6 percent, which includes an approximately 250 basis point negative impact from the wind-down of its Canadian operations.

It expects adjusted EPS of between 1.80 dollars and 2.20 dollars, excluding the impact of Canada.

Nordstrom CEO Erik Nordstrom told investors: “We are pleased with the progress we're making against the key priorities we laid out for 2023 as we continue to enhance our overall customer experience, improve Nordstrom Rack performance, increase inventory productivity, and optimize our supply chain operations.”

“We're encouraged by our momentum, especially given the uncertain macroeconomic environment. We remain focused on executing with agility and delivering long-term value to our shareholders.”