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Nordstrom, Inc. JWN, the Seattle-based fashion retailer, has announced an upward revision to its revenue expectations for fiscal 2024, showcasing positive momentum, robust demand and comparable growth.
Nordstrom has raised its full-year sales outlook following stronger-than-anticipated holiday shopping performance across its stores and online platforms. The robust holiday results exceeded the company's cautious expectations, driven by increased consumer engagement and successful sales strategies during the critical holiday season.
JWN’s Upgraded Outlook for FY24
Nordstrom reported a total company net sales increase of 4.9% and a comparable sales increase of 5.8% for the nine-week holiday period ending Jan. 4, 2025, compared with the nine weeks ended Dec. 30, 2023. For the Nordstrom banner, net sales grew 3.7%, while comparable sales rose 6.5%, driven by strong customer demand. The Nordstrom Rack banner showed even stronger performance, with a 7.4% increase in net sales and 4.3% growth in comparable sales, highlighting solid results in the off-price segment.
In late November, Nordstrom had projected a conservative full-year revenue outlook, ranging from flat to up 1%, with adjusted earnings between $1.75 and $2.05 per share, citing a noticeable decline in sales trends in late October. However, CEO Erik Nordstrom attributed the stronger-than-expected holiday sales to the company's competitive promotional strategies and the strength of its offerings, which outperformed prior expectations.
Building on this strong performance, Nordstrom has raised its revenue guidance for fiscal 2024. For the fiscal year, JWN anticipates revenue growth, including retail sales and credit card revenues, of 1.5% to 2.5% compared with the fiscal 2023, which included 53 weeks, with an approximately 135 basis point unfavorable impact due to the absence of the 53rd week.
For fiscal 2024, the company expects comparable sales growth of 2.5-3.5% versus the 52 weeks in fiscal 2023, compared with its prior outlook of 1% to 2% growth.
More on JWN Stock
As Nordstrom prepares for privatization, the founding family has reached a deal to buy the retailer. In late December, the company announced a $6.25 billion buyout in partnership with El Puerto de Liverpool, a Mexican department store chain. The transaction was approved by the board of directors and is expected to close in the first half of 2025.
Nordstrom has been making strides with its customer-centric strategy. The company is focused on driving growth at the Nordstrom banner while optimizing operations and strengthening its Rack off-price stores. Efforts include expediting deliveries, expanding online offerings and adding affordable merchandise to Rack stores.