Q1 2025 Earnings Summary
Reported on Feb 18, 2025 (After Market Close)
Pre-Earnings Price$21.03Last close (May 30, 2024)
Post-Earnings Price$21.58Open (May 31, 2024)
Price Change
$0.55(+2.62%)
- Strong Sales Growth Across Both Banners: Nordstrom delivered net sales growth in excess of 5%, with double-digit growth at the Rack and positive contribution from Nordstrom banner stores. Sales were positive in each month during Q1, and positive trends continue quarter-to-date. ,
- Strategy Resonating with Customers, Driving Improved Engagement: The company's focus on coveted brands and newness is driving better business, resulting in sequential improvement in both banners and strong sell-through. They are acquiring new customers with each new store opening, and loyalty sales reached nearly 70% of total sales. ,
- Expectations of Margin Improvement and Swift Operational Actions: Despite timing-related headwinds impacting gross margin in Q1, the company expects these to reverse in future periods. They have taken swift action on operational factors affecting gross margin, and their focus on selling at first price is expected to drive healthier margins. ,
- Sales trends have softened in early Q2, with positive trends continuing but softening compared to Q1, indicating potential slowing momentum.
- Gross profit margin decreased by 225 basis points, compared to the same period last year, with half of the decrease due to operational factors, suggesting ongoing margin pressure beyond timing issues.
- There has been a sales dropoff in the designer category, which is a significant part of the business, indicating potential weakness in an important area. The company attributes it to normalization but acknowledges challenges on the topline.