Nordstrom Q2 Revenue Boosted by Sales Event, Stocks | kbnmart

Nordstrom Inc. reported better-than-expected second-quarter sales growth on Tuesday, helped by a crucial anniversary sales event, even as consumers remained cautious amid inflationary pressures, sending its shares up 11% in extended trading.

The upscale department store chain also slightly revised its forecast for comparable annual sales, raising the lower end to a range of flat to 2% growth, up from its previous forecast of 1% to 2% growth.

While affluent shoppers continue to spend, albeit at a slower pace, benefiting clothing chains like Abercrombie & Fitch and Gap, middle- and lower-income consumers are feeling the pinch, hurting sales at department store chains like Macy’s.

The slightly earlier start of Nordstrom’s anniversary sales event, which ran from July 15 to Aug. 4 this year, helped drive customers to physical stores and the company’s website, contributing about 100 basis points to net sales compared to 2023.

Nordstrom shares have fallen about 3% over the past month. Analysts pointed to weak demand during the selloff, with Placer.ai foot traffic data indicating July was the weakest month of the quarter.

The stock is up about 16% this year, compared with about 18% in the broader S&P 500 index.

The company’s total revenue rose 3.2% to $3.89 billion in the quarter ended Aug. 3, from $3.77 billion a year earlier, roughly in line with analysts’ average forecast of $3.90 billion, according to LSEG data.

The Seattle, Washington-based company also revised its earnings per share forecast to between $1.75 and $2.05, up from the previous range of $1.65 to $2.05.

On an adjusted basis, the company reported earnings of 96 cents per share, compared to a loss of 24 cents in the first quarter.