Nordstrom stocks soar on upbeat first-quarter sales

Shares of Nordstrom, Inc. edged up on Wednesday’s pre-market after its fiscal first-quarter sales went ahead of the analysts’ estimates.

The American luxury store chain gained 8.37% or 1.85 points to $22.53 per share. It completely reversed a plunge of 3.59% or 0.77 points to $20.68 per share in the regular trading session. Accordingly, the upturn added $298.07 million to the company’s valuation.

Nordstrom reported revenue of $3.57 billion for the three months ended in April. The result surpassed the market consensus of $3.28 billion.

Consequently, it reported a loss of $0.60 per share, slightly higher than the anticipated $0.50 per share.

The cost resulted from selling the company’s interest in a corporate office building. It also included an impairment charge related to a Trunk Club property.

The firm also reported a net income of $20.00 million, compared with a net loss of $166.00 million a year earlier.

Moreover, total revenue accelerated to $3.57 billion, beating the estimates of $3.28 billion. It also came in higher than the previous $3.00 billion.

Nordstrom cited momentum in the business as shoppers visited the firm’s department stores to refresh their closets with designer brands and shoes.

Nordstrom raises full-year outlook

Nordstrom lifted its fiscal 2022 revenue, including credit card sales. As a result, it anticipated the metric to increase in the range of 6.00% to 8.00%.

The adjusted outlook is notably higher from the prior guidance of 5.00% to 7.00%.

In addition, it forecasts earnings per share in a range of $3.38 to $3.68. Similarly, it went above the last forecast of $3.15 to $3.50.

This optimistic outlook contrasts with retailers like Target, Kohl’s, and Abercrombie & Fitch. Recently, Nordstrom’s peers dialed back their annual forecasts as supply chain costs and other expenses weighed into profits.