Nordstrom Posts Unexpected Profit and Shares Rise

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Updated June 01, 2023
Nordstrom

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Key Takeaways

  • Nordstrom reported a surprise quarterly profit and better-than-expected revenue.
  • Gross profit margin got a boost from inventory productivity.
  • The retailer reaffirmed its full-year guidance.

Nordstrom (JWN) posted a surprise profit, and sales beat expectations, sending shares higher in early trading on Thursday.

The retailer posted fiscal 2023 first quarter earnings per share (EPS) of $0.07. Analysts had anticipated a loss of $0.10 per share. Revenue fell 10.9% to $3.18 billion, but that still was above forecasts. 

The company noted that most categories in the U.S. lost ground in the first quarter versus 2022, when sales boomed because of pent-up demand following the COVID-19 lockdowns. It added revenue was reduced 250 basis points (bps) by the winding down of its Canadian operations. 

Nordstrom indicated gross profit margin jumped 110 bps from 2022 because of increasing inventory productivity. It also said costs were reduced through supply-chain efficiencies. 

CEO Erik Nordstrom explained that the company is “encouraged by our momentum, especially given the uncertain macroeconomic environment.”

Nordstrom reiterated its full-year guidance of retail sales and credit card revenues down 4% and 6%, respectively, with EPS of $1.80 to $2.20.

Shares of Nordstrom soared more than 11% early in Thursday's session following the release, but they gave up some of those gains and were up about 4% as of 11:30 a.m. ET.

Nordstrom YTD chart

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  1. Nordstrom. “Nordstrom Reports First Quarter 2023 Earnings.”

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