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Nordstrom raises full year forecast, reports strong Q2

By Prachi Singh

25 Aug 2021

Fashion

Image: Nordstrom press room

Nordstrom, Inc. reported net earnings of 80 million dollars or 49 cents per diluted share, with EBIT of 151 million dollars for the second quarter. The company now expects full year net sales to increase over 35 percent compared to previous outlook of increase of more than 25 percent and EBIT margin, as percent of sales is expected to range between 3 to 3.5 percent.

Net sales for the quarter increased 101 percent from the same period in fiscal 2020 and decreased 6 percent from the same period in fiscal 2019, representing a sequential improvement of approximately 700 basis points relative to the first quarter of fiscal 2021.

“Our second quarter results demonstrate the strength of our two brands, the power of our ‘closer to you’ strategy and the success of our iconic Anniversary Sale,” said Erik Nordstrom, chief executive officer of Nordstrom, Inc.

Highlights of Nordstrom’s second quarter results

The company said, total Anniversary event sales increased 1 percent compared with 2019, including the final week of the event which fell in the third quarter. Traffic and sales trends were strong across both digital and stores.

For the Nordstrom brand, net sales increased 127 percent compared with the same period in fiscal 2020, and decreased 5 percent compared with the same period in fiscal 2019.

For the Nordstrom Rack brand, net sales increased 61 percent compared with the same period in fiscal 2020, and decreased 8 percent compared with the same period in fiscal 2019.

Digital sales increased 30 percent compared with the same period in fiscal 2020 and increased 24 percent compared with the same period in fiscal 2019. Digital sales represented 40 percent of total sales during the quarter.

Gross profit, as a percentage of net sales, of 35 percent increased approximately 1,370 basis points compared with the same period in fiscal 2020, while it remained flat compared with the same period in fiscal 2019.

EBIT was 151 million dollars compared with a loss of 370 million dollars during the same period in fiscal 2020. Second quarter net income of 80 million dollars increased from net loss of 255 million dollars during the same period in fiscal 2020, which included after-tax Covid-19 related charges of 14 million dollars.