Shares of Nordstrom Inc. bounced up from its sharp plunge last Wednesday trading as it reported earnings that fell short of analysts’ estimates.
In the after-hours market, the department store company gained 0.31% or 0.07 points to $22.73 per share. It slightly reversed its decline of 29.03% or 9.27 points to $22.66 per share yesterday.
Moreover, its stock improved by 1.00% year-to-date as it holds a market capitalization of $5.10 billion.
In the three-month period that ended on October 30, Nordstrom posted lackluster earnings that distressed the investors.
Accordingly, it earned $64.00 million or $0.39 per share, higher than the $53.00 million or $0.34 a year earlier.
However, it is below the market forecast of $0.56 and to its pre-pandemic levels.
Meanwhile, its revenue, including credit card sales, jumped to $3.64 billion year-over-year from $3.09 billion. Remarkably, it surpassed the expected figure of $3.55 billion.
In its store brand, revenue advanced 11.00% from a year ago and elevated 3.00% on a two-year basis.
Correspondingly, the rising numbers of shoppers contributed to the uptrend as they spent more per purchase.
Subsequently, the firm specified home goods, active apparel, designer brands and beauty as primary areas of its business strength.
Then, Nordstrom Rack, an off-price division that contends with TJ Maxx and Macy’s Backstage, attained a 35.00% year-over-year jump in its sales.
Nevertheless, it is still 8.00% lower than its 2019 revenue.
Consequently, the American company mentioned that it continually exerts its efforts to improve Rack’s performance.
In line with this, Nordstrom invested in raising brand awareness, well-managed inventory levels and balanced prices, aligning with shoppers’ expectations.
Nordstrom Reports Q3 2021 Performance
Nordstrom’s digital sales weakened 12.00% year-over-year but improved 20.00% on a two-year basis. This represented 40.00% of the total revenue of the business.
Then, it noted a 13.00% increase from its inventory level from the same period in 2019 despite the ongoing supply chain bottlenecks.
Subsequently, the department store operator pulled forward some goods orders, an effort to mitigate the persisting supply crunch.
In its fourth-quarter outlook, it retained its full-year revenue, including credit card sales. It reiterated a 35.00% gain from last year. Meanwhile, analysts projected 36.00% growth.
Furthermore, the disappointing performance of Nordstrom underperformed rivals Macy’s and Kohl’s.
Last week, its competitors boosted their estimates for the remainder of the year. Consequently, both companies successfully passed higher costs to shoppers along with a managed inventory.