Nordstrom raised its full-year sales outlook after holiday shopping exceeded expectations at its stores and online. The company maintained its profit guidance despite the increased sales forecast. Nordstrom, based in Seattle, now anticipates full-year revenue growth of 1.5% to 2.5%, accounting for one fewer fiscal week, compared to the previous outlook of flat to up 1%.
In late November, Nordstrom had taken a cautious stance on its outlook despite surpassing Wall Street’s expectations for third-quarter sales. The company had initially projected full-year revenue to be flat to up 1% and adjusted earnings per share to range between $1.75 and $2.05. CEO Erik Nordstrom mentioned a decline in sales trends towards the end of October during an earnings call.
However, in a recent news release, Nordstrom attributed the better-than-expected holiday sales to its competitiveness in promotions and the strength of its offerings. Net sales increased by 4.9%, and comparable sales rose by 5.8% for the nine-week holiday period ending Jan. 4 compared to the previous year.
During the holiday season, net sales at Nordstrom increased by 3.7%, and comparable sales rose by 6.5%. At Nordstrom Rack, net sales were up by 7.4%, and comparable sales increased by 4.3%. Nordstrom’s results offer insights into consumer health and retail performance during the crucial shopping season, with other retailers like Walmart, Best Buy, and Macy’s set to report earnings in late February.
Early holiday data has shown promising signs, with U.S. online spending rising nearly 9% from Nov. 1 to Dec. 31 compared to the previous year. Retail sales for the holiday season, excluding automotive sales, increased by 3.8% year over year from Nov. 1 to Dec. 24. Nordstrom’s update coincides with the family’s plan to take the retailer private through a buyout deal worth approximately $6.25 billion with the founding family and El Puerto de Liverpool. The transaction, approved by the board of directors, is expected to close in the first half of 2025.
Nordstrom’s shares closed at $24.01, down about 4% from its 52-week high. The company is set to announce its full fourth-quarter and full-year results on March 4.
