“Logistics networks have recovered from the supply chain challenges that began during the pandemic, and we have improved our supply chain operations over the past few years,” he said.
(Nordstrom executives also said on the call that there was no update on efforts to take the company private.)
The company’s total net sales rose 3.4% to $3.89 billion, just above estimates. and comparable sales increased by 1.9%. Nordstrom noted that the timing shift of its anniversary sale – one day in the third quarter of 2024 versus eight days in 2023 – had a positive impact on net sales of approximately 100 basis points compared to the second quarter of 2023.
Nordstrom’s net sales and comparable sales each increased 0.9%. Nordstrom Rack’s net sales increased 8.8% and comparable sales increased 4.1%. The company opened five new Rack stores during the quarter, bringing the year-to-date total to 11, with 12 more openings planned through the holidays.
Women’s clothing, beauty and kids saw the strongest growth compared to 2023. During the anniversary sale, the Beauty, Active and Home categories grew the most.
Digital sales increased 6.2% compared to the same period in fiscal 2023 and accounted for 37% of total revenue in the quarter. The company ended the second quarter with $1.5 billion in available liquidity, including $679 million in cash.
“Our second quarter results were solid and we are encouraged by the continued sales strength in both areas and the progress we are making in expanding gross margin and increasing profitability,” said Eric Nordstrom. “We are confident about our outlook for the remainder of the year and look forward to maintaining the momentum we have built.”
Nordstrom expects full-year sales to decline 1% to 1% year-over-year, compared to previous guidance of 2% lower to 1% higher. The company expects adjusted earnings per share to be in the range of $1.75 to $2.05, compared to previous guidance of $1.65 to $2.05.
Nordstrom ended the quarter with 370 stores, including 269 Rack stores, two Last Chance outlets, 93 Nordstrom stores and six Nordstrom Local service centers.
This article was originally published in the sister publication Age of the chain stores.
