Nordstrom Posts Solid Sales Gains for 2024 Holiday Season; Raises 2024Â Outlook
Nordstrom Inc., surpassing its own and industry expectations for the holiday season, reported significant comparable store and total sales gains.
Comparable sales rose 5.8 percent and total sales increased 4.9 percent for the nine-week period ended Jan. 4, compared with a year earlier.
For the Nordstrom banner, net sales increased 3.7 percent and comparable sales increased 6.5 percent, while Nordstrom Rack banner net sales increased 7.4 percent and comparable sales increased 4.3 percent.
“As a result of our efforts to remain competitive in the promotional environment and the strength of our offering, our holiday sales in November and December exceeded the expectations we shared during our most recent earnings call,” Erik Nordstrom, chief executive officer of Nordstrom Inc., said in a statement Friday. “For the full year, we’re raising our top-line outlook and reaffirming our profitability guidance.”
Based on holiday results, the company now expects revenue growth, including retail sales and credit card revenues, of 1.5 to 2.5 percent versus the 53-week fiscal 2023, which includes an approximately 135 basis-point unfavorable impact from the extra week. Nordstrom’s previous outlook was for flat to 1 percent sales growth. Additionally, the company expects comparable sales growth of 2.5 to 3.5 percent versus 52 weeks in fiscal 2023, compared with its prior outlook of 1 to 2 percent growth.
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In the third quarter, Nordstrom reported its net sales increased 4.6 percent to $3.35 billion. Company comparable sales increased 4 percent.
The company is scheduled to report its fourth-quarter and full-year 2024 financial results after the close of the financial markets on March 4.
Nordstrom has seen success in executing on strategic priorities, including an aggressive expansion of the Rack off-price chain and culling the Rack assortment to provide better brands, as well as driving digital growth and comp gains at the Nordstrom department store business.
On Dec. 23, Nordstrom announced that it signed a definitive agreement under which the Nordstrom family and Mexican retailer El Puerto de Liverpool will acquire all of the outstanding shares of Nordstrom not beneficially owned by the Nordstrom family and Liverpool.
It’s an all-cash transaction with an enterprise value of about $6.25 billion. Nordstrom common shareholders will receive $24.25 in cash for each share of common stock they hold. The transaction is expected to close in the first half of 2025, subject to regulatory and other conditions.
Nordstrom Inc. is led by brothers Erik and Pete, CEO, and president and chief brand officer, respectively, as well as their cousin Jamie, who serves as chief merchandising officer.
