The company reported a loss per diluted share of $1.05, including the impact of a debt refinancing charge of 41 cents a share, on sales of $3.01 billion.
Nordstrom had been expected to report a loss of 57 cents a share, on sales of $2.9 billion, based on a FactSet survey of 20 analysts.
In the same period a year ago, the company posted a loss of $3.33 a share on sales of $2.1 billion. It reported net income of $193 million.
Nordstrom reaffirmed its projection for full-year revenue growth of more than 25%. It said its income tax rate is expected to be 27%. Its earnings before interest and taxes margin is expected to be 3% of sales.
“We are encouraged by sales trends both in our stores and our digital business, supported by an improving consumer environment and strong execution,” said Erik Nordstrom, CEO of Nordstrom, in a statement. “Looking ahead to summer, we are well-positioned to continue to capitalize on pent-up demand, and are further strengthening our position as we execute on our strategy to win in our most important markets, broaden the reach of Nordstrom Rack and increase our digital velocity.”
The company said digital sales rose 23% compared with the same period in fiscal 2020 and 28% compared with the same period in fiscal 2019. Digital sales represented 46% of total sales during the quarter.
Nordstrom said it saw improvements in sales of occasion-based apparel, handbags, sunglasses and swimwear. It said home, active, designer and beauty categories also performed well. The company is also reducing inventory overages faster than previously expected. At the same time, Nordstrom is “managing receipt flows to mitigate potential supply chain disruptions as the year progresses,” according to the statement.
Shares of Nordstrom fell $2.15, or 5.8%, to $34.33 in after-hours trading. The stock fell 2.9% in the regular session.