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Nordstrom Swings to Profit as Revenue Doubles

Nordstrom, the Seattle luxury retailer, reported that it swung to a fiscal-second-quarter profit from a year-earlier loss as revenue doubled.
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Nordstrom  (JWN) - Get Nordstrom, Inc. (JWN) Report, the Seattle luxury retailer, reported that it swung to a fiscal-second-quarter profit from a year-earlier loss as revenue doubled.

For the quarter ended July 31, net income was 49 cents a share compared with a loss of $1.62 a share in the year-earlier quarter. 

Revenue reached $3.66 billion from $1.86 billion. 

A survey of analysts by FactSet produced consensus estimates of GAAP earnings of 28 cents a share on revenue of $3.34 billion.

Nordstrom shares were lower in after-hours trading. The stock fell $3.06, or 8%, to $34.75 in recent action. Shares closed regular Tuesday trading up 3% at $37.81.

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For the full year Nordstrom raised its revenue outlook, to an expected increase of 35% from its previous estimate of 25%. 

“As consumers refreshed their wardrobes, the company’s core categories of shoes, apparel and accessories” saw the biggest improvement in sales trends relative to Q1 2021, Nordstrom said in a statement.

“In addition, sales in active, home and designer categories continued to grow versus 2019,” the year before the pandemic hammered the entire retail industry.

"Traffic and sales trends were strong across both digital and stores as customers responded positively to expanded selection, better in-stock rates on top-selling items and enhanced capabilities including convenient pickup options at Nordstrom and Nordstrom Rack stores," the company added.

Most recently, Nordstrom said that it acquired a minority interest in four Asos brands: Topshop, Topman and Miss Selfridge and Hitt. Terms weren't disclosed.

Asos, London, calls itself an "online retailer for fashion loving 20-somethings" worldwide.