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Nordstrom Q3 net sales increase 18 percent

By Prachi Singh

24 Nov 2021

Business

Image: Nordstrom media center

Nordstrom, Inc. reported third quarter net earnings of 64 million dollars or 39 cents per diluted share, with EBIT of 127 million dollars. Net sales for the quarter increased 18 percent versus the same period in fiscal 2020 and decreased 1 percent versus the same period in fiscal 2019.

“We’re taking action to improve performance at Nordstrom Rack, including optimizing inventory levels, better balancing price points and increasing brand awareness. Work is also underway to improve merchandise margin across the company and ensure we have the visibility and flexibility we need to serve our customers seamlessly, despite global supply chain challenges,” said Erik Nordstrom, chief executive officer of Nordstrom, Inc.

Commenting on the trading ahead, Pete Nordstrom, president and chief brand officer of Nordstrom, Inc. said: “For the holiday season, we are excited about our plans to use our integrated network of stores and digital platforms to showcase holiday dressing, decor and gift offerings, and provide festive experiences and convenient services that make shopping easy and enjoyable for our customers.”

Nordstrom banner Q3 net sales increase 11 percent

For the Nordstrom banner, net sales increased 11 percent and 3 percent compared with the same periods in fiscal 2020 and fiscal 2019, respectively. The timing of this year’s anniversary sale had a positive impact on Nordstrom banner net sales of approximately 300 basis points compared with the third quarter of 2019.

For the Nordstrom Rack banner, net sales increased 35 percent and decreased 8 percent compared with the same periods in fiscal 2020 and fiscal 2019, respectively.

Digital sales decreased 12 percent compared with the same period in fiscal 2020, during which the anniversary sale temporarily shifted to the third quarter of that year, and increased 20 percent compared with the same period in fiscal 2019. The timing of this year’s anniversary sale had a positive impact on company digital sales of approximately 400 basis points compared with the third quarter of 2019. Digital sales represented 40 percent of total sales during the quarter.

Gross profit, as a percentage of net sales, of 35 percent increased 230 basis points compared with the same period in fiscal 2020. Gross profit, as a percentage of net sales, increased 80 basis points compared with the same period in fiscal 2019 cost structure in 2020.

EBIT was 127 million dollars in the third quarter of 2021, compared with 106 million dollars during the same period in fiscal 2020. EBIT was 66 million dollars lower than the third quarter of fiscal 2019. Third quarter net income of 64 million dollars increased from net income of 53 million dollars during the same period in fiscal 2020.

For fiscal 2021, the company expects revenue, including retail sales and credit card revenues, to grow more than 35 percent versus fiscal 2020. EBIT margin is expected to be approximately 3.0 to 3.5 percent of sales.