Nordstrom posts Q3 revenue decline of 6.8 percent

Nordstrom reported third quarter net earnings of 67 million dollars or earnings per diluted share of 41 cents and EBIT of 102 million dollars, while adjusted EPS was 25 cents.

The company’s net sales decreased 6.8 percent versus the same period in fiscal 2022 and gross merchandise value (GMV) decreased 7.1 percent.

"In the third quarter we continued to make progress against our priorities, and we're especially pleased with the resulting improvements in gross margin and earnings," said Erik Nordstrom, chief executive officer of Nordstrom, Inc.

Review of Nordstrom’s Q3 performance

During the quarter, Nordstrom banner net sales decreased 9.4 percent and GMV decreased 9.8 percent. Net sales for Nordstrom Rack decreased 1.8 percent.

Nordstrom’s digital sales decreased 11.3 percent compared with the same period in fiscal 2022.

During the third quarter, the company said the active category grew by double-digits, and beauty and accessories were up by low single-digits, versus 2022.

Nordstrom update FY23 outlook

The company updated its financial outlook for fiscal 2023, and now expects revenue decline, including retail sales and credit card revenues, of 4 to 6 percent.

Nordstrom forecasts EBIT margin of 1.8 to 2.1 percent of sales, adjusted EBIT margin of 3.8 to 4.1 percent of sales, EPS of 74 cents to 94 cents and adjusted EPS of 1.90 dollars to 2.10 dollars.

"Thanks to solid execution by our merchants, we're heading into holiday in a favourable inventory position across both banners," added Pete Nordstrom, president of Nordstrom.

On November 15, 2023, the company’s board of directors declared a quarterly cash dividend of 19 cents per share, payable on December 13, 2023, to shareholders of record at the close of business on November 28, 2023.