Nordstrom Inc.’s second-quarter sales gains sent shares up 6.5 percent after the market closed Tuesday and prompted the retailer to raise its full-year forecast.

While net income declined slightly due to an impairment, net sales increased 3.4 percent to $3.89 billion and comparable sales increased 1.9 percent compared to the same period in fiscal 2023. The results were better than comparable department stores such as Macy’s and Dillard’s, which earlier this month reported negative second-quarter sales as consumers held back on spending and felt pressure from inflation.

Based on second-quarter results, the Seattle-based retailer slightly increased its forecast for comparable sales in 2024 to unchanged to 2 percent, up from the previous forecast of minus 1 percent to plus 2 percent.

Wall Street was impressed by Nordstrom’s second-quarter sales figures and improved annual forecast, sending the retailer’s share price up 6.5 percent, or $1.38, to $22.52 in after-hours trading.

Nordstrom executives said the top-selling categories at Nordstrom and Nordstrom Rack are athletic wear, women’s clothing, beauty and children.

They also said business was driven by improved merchandise flow, more full-price sales, the introduction of radio frequency identification (RFID) technology that provides faster inventory data, the embrace of private label following a redesign unveiled earlier this year and continued momentum at Rack, which is opening 23 stores this year.

“Our second quarter results were solid and we are encouraged by the continued sales strength in both businesses and the progress we are making in expanding gross margin and increasing profitability,” said Erik Nordstrom, CEO of Nordstrom, Inc. “We are confident in our outlook for the remainder of the year and look forward to maintaining the momentum we have built as we execute on our 2024 priorities.”

Net income in the second quarter was $122 million, or 72 cents per diluted share. Earnings before interest and taxes reached $190 million. In comparison, net income in the same period last year was $137 million, or 84 cents per share, and EBIT was $192 million.

Adjusted EBIT, which excludes a charge primarily related to the impairment of supply chain assets resulting from the decision not to open a new fulfillment center on the West Coast, reached $244 million last quarter, exceeding the prior year’s EBIT of $192 million.

Erik Nordstrom explained this decision during a conference call with investors and analysts: “In the second quarter, we made the strategic decision to discontinue the build-out and planning of a leased omnichannel center to be used in the Pacific Northwest going forward. Logistics networks have recovered from the supply chain issues that began during the pandemic, and we have improved our supply chain operations over the past few years. We have determined that we can serve West Coast customers more efficiently through our existing supply chain network while avoiding additional facility build-out costs. As a result, we have taken an asset impairment, which is reflected in our results.”

Gross merchandise value increased by 3.5 percent. The timing shift of the anniversary sale, which now took place in the third quarter of 2024, compared to eight days in 2023, had a positive impact on net sales of approximately 100 basis points compared to the second quarter of 2023.

“We are excited about the Anniversary Sale and the enthusiastic response from our loyal customers. They were highly engaged throughout the event and responded positively to our assortment, experience and service,” said Pete Nordstrom, President and Chief Brand Officer, in his statement.

Nordstrom’s net sales and comparable sales each increased 0.9 percent compared to the same period in fiscal 2023. Gross merchandise value increased 1.1 percent. The timing shift of the Anniversary Sale had a positive impact on Nordstrom’s net sales compared to the second quarter of 2023 by approximately 200 basis points.

Nordstrom Rack’s net sales increased 8.8 percent and comparable sales increased 4.1 percent compared to the same period last year.

Digital sales increased 6.2 percent compared to the same period in fiscal 2023. Digital sales accounted for 37 percent of total revenue in the quarter.

Gross profit as a percentage of net sales of 36.6 percent increased 155 basis points compared to the same period in fiscal 2023, primarily due to strong regular-price sales and leverage on higher total sales.

Ending inventory increased 8.3 percent compared to the same period in fiscal year 2023, compared to a sales increase of 3.4 percent.

During a conference call with investors and retail analysts, Erik Nordstrom said customers responded positively to new arrivals and their favorite brands in the second quarter. He said Nordstrom showed “more consistent offerings of the most in-demand brands, newness and depth.”

Nordstrom.com was able to add 15,000 new items and 100 new brands with its marketplace format launched in April last year, although Erik Nordstrom pointed out that the marketplace is not yet a major driver.

The Nordstroms did not provide any update on the Nordstrom brothers’ (Pete and Erik) intentions to take the company private. A special committee of the board continues to review the plan and other possible plans that could increase shareholder value.

Erik Nordstrom also pointed out that the Manhattan flagship is the fleet’s best-selling ship and one of the fastest-growing ships.

Pete Nordstrom said the anniversary sale fulfilled its plan and was beneficial for early visibility into how categories might perform in the fall. Outerwear and sweaters performed particularly well, and private labels also showed strength across all categories, especially women’s clothing.

In designer clothing in general, “this has been a consistent theme for some time. It’s been a challenge,” said Pete Nordstrom.