Nordstrom, Inc. JWN posted fourth-quarter fiscal 2024 results, wherein earnings beat the Zacks Consensus Estimate and increased year over year. However, the top line declined year over year and missed the Zacks Consensus Estimate.

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Nordstrom, Inc. Price, Consensus and EPS Surprise

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This Seattle, WA-based company posted adjusted earnings of $1.10 per share, which surpassed the Zacks Consensus Estimate of 90 cents and improved 14.6% from 96 cents in the year-ago period. 

Nordstrom stock has gained 6.4% in the past six months, outpacing the industry’s rise of 4.9%.

JWN Stock's Past Six-Month Performance

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JWN’s Quarterly Performance: Key Metrics & Insights

Total revenues of $4.32 billion declined 2.1% year over year and missed the consensus estimate of $4.33 million. JWN’s net sales improved 2.5% year over year, excluding approximately $190 million related to the 53rd week in fiscal 2023. Comparable sales grew 4.7%. The gross merchandise value (GMV) decreased 0.2%.

In the fiscal fourth quarter, women's apparel, activewear and men's clothing experienced the highest growth compared with fourth-quarter fiscal 2023. Credit card net revenues declined 6.3% to $119 million in the fiscal fourth quarter.

In fourth-quarter fiscal 2024, net sales for the Nordstrom banner decreased 3.7% from the year-ago quarter's $2.76 billion. Our model predicted sales of $2.72 billion. Excluding the 53rd week, sales at the Nordstrom banner rose 0.5%. GMV declined 1% year over year for the Nordstrom banner in the fiscal fourth quarter. The comparable sales growth improved 5.3% for the banner.

Sales at the Nordstrom Rack banner advanced 1.2% to $1.45 billion. Our model expected sales of $1.43 billion for Nordstrom Rack. Excluding the 53rd week, sales at Nordstrom Rack rose 6.6%. Comparable sales increased 3.5% at Nordstrom Rack.

Digital sales fell 1.8% year over year and rose 2.6%, excluding the 53rd week in the fiscal fourth quarter. Digital sales represented 38% of the company’s net sales in the fiscal fourth quarter.

Nordstrom's gross profit margin expanded 290 bps year over year to 37.3% for the reported quarter, driven by merchandise margin expansion related to the timing of markdown recognition under the cost method of accounting, improved shrink and lower loyalty promotions. We predicted gross margin to expand 100 basis points.

Adjusted selling, general and administrative (SG&A) expenses, as a percentage of net sales, were 33.7%, down 130 bps year over year. Adjusted SG&A expenses excluded $18 million of privatization fees and a $13 million accelerated technology depreciation charge. The increase in adjusted SG&A expenses was mainly due to higher labor costs.

Adjusted earnings before interest and taxes (EBIT) of $273 million rose 10.5% year over year in the fiscal fourth quarter. We predicted an adjusted EBIT of $243.5 million for the fiscal fourth quarter. The adjusted EBIT margin expanded 240 bps in the quarter to 6.5%.

JWN’s Financial Health Snapshot

The Zacks Rank #2 (Buy) company ended fiscal 2024 with available liquidity of $1.8 billion, including $1 billion of cash and cash equivalents. The company had a long-term debt (net of current liabilities) of $2.6 billion and total shareholders’ equity of $1.1 billion as of Feb. 1, 2025.

As of Feb. 1, 2025, JWN’s net cash provided for operating activities was $1.3 billion. The company spent $516 million on capital expenditures in fiscal 2024. Nordstrom recently approved a dividend of 19 cents per share, payable on March 11, to its shareholders of record as of March 26.

In December 2024, Nordstrom reached an agreement with the Nordstrom family and El Puerto de Liverpool, S.A.B de C.V. ("Liverpool") to acquire all outstanding shares not already owned by them. The transaction, expected to close in the first half of 2025 pending shareholder approval, will result in Nordstrom becoming privately held.

Three Other Picks You Can’t Miss

We have highlighted three other stocks in the broader sector, namely Boot Barn Holdings, Inc. BOOT, Urban Outfitters URBN and Deckers DECK.

Boot Barn is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and sales indicates growth of 21.4% and 14.9%, respectively, from the fiscal 2024 reported levels. BOOT delivered a trailing four-quarter earnings surprise of 7.2%, on average.

Urban Outfitters, a fashion lifestyle specialty retailer, currently flaunts a Zacks Rank of 1. URBN delivered an earnings surprise of 28.4% in the trailing four quarters, on average.

The consensus estimate for Urban Outfitters’ current financial-year sales indicates growth of 5.9% from the year-ago figure.

Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It presently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 21.2% and 15.6%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter earnings surprise of 36.8%, on average.

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