Nordstrom (JWN) - Get Nordstrom, Inc. (JWN) Report reported a loss of $1.05 per share for the three months ending on May 1, nearly double the Street consensus forecast, even as net sales surged 44% from last year to an analyst-beating $2.92 billion. Promotions used to clear backed-up inventory, however, eroded gross margins, as did higher COVID-related costs such as wages and shipping.
"Looking ahead, the company is balancing inventory levels with sales while managing receipt flows to mitigate potential supply chain disruptions as the year progresses," CFO Anne Bramman told investors on a conference call late Tuesday. "Gross profit as a percentage of net sales decreased 260 basis points compared with the same period in fiscal 2019, primarily due to deleverage on lower sales and lower merchandise margins as we took action to reduce elevated inventories coming into the quarter, partially offset by permanent reductions in buying and occupancy costs."
And then there's Urban Outfitters, which reported first-quarter earnings of 54 cents a share, which topped analysts' estimates of 17 cents a share. The company reported revenue of $927.4 million, beating Wall Street's $900.1 million estimate.
“The first quarter was one for the record books; record sales, a record low markdown rate, and record earnings per share,” said CEO Richard Hayne. “Strong ‘comps’ were driven by powerful demand and superb execution by all teams. In May, sales trends have accelerated further which we believe bodes well for second quarter results,” finished .
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