Gross profit, as a percentage of net sales, of 35.6 percent increased 60 basis points (bps) compared to 35.0 percent in the same period last fiscal year, mainly due to strong sales prices regular. Ending inventory increased 5.9 percent compared to the same period in fiscal 2023, against a 4.6 percent increase in sales, Nordstrom said in a news release.
Nordstrom reported net sales of $3,347 million in Q3 FY24, up 4.6 percent year-over-year, with comparable sales increasing 4.0 percent and digital sales growing 6.4 percent year-over-year . Gross profit increased to 35.6 percent and EBIT reached $83 million. For the nine months of FY24, net sales increased 4.3 percent year-on-year to $10,353 million, and EBIT increased 620 percent to $252 million. Earnings per share for FY24 are forecast to be between $1.40 and $1.70.
In the third quarter, women's clothing and activewear saw double-digit growth, and shoes, men's clothing and children's clothing grew by mid- to high-single digits, compared to FY23. women's clothing, footwear and men's clothing accelerated sequentially starting in the second quarter.
Earnings before interest and taxes (EBIT) were $83 million and total comparable sales increased 4.0 percent year-on-year. Gross merchandise value (GMV) increased 5.3 percent year-on-year.
On a brand basis, Nordstrom's net sales increased 1.3 percent and comparable sales increased 4.0 percent compared to the same period in fiscal 2023. GMV increased 2.4 percent year over year. Meanwhile, Nordstrom Rack's net sales increased 10.6 percent and comparable sales increased 3.9 percent compared to the same period in fiscal 2023.
The company's digital sales increased 6.4 percent compared to the same period in FY23. Selling, general and administrative (SG&A) expenses, as a percentage of net sales, increased 36.6 percent 25 basis points compared to 36.3 percent in the same period in fiscal 2023, primarily due to higher labor costs and an acceleration-related charge. technology depreciation, partially offset by leverage from higher sales and improvements in variable costs across the business. Excluding the $14 million charge related to accelerated technology depreciation, adjusted selling, general and administrative expenses, as a percentage of net sales, were 36.2 percent, according to the release.
“Continued sales growth across the company and strong gross margin in the third quarter indicate that our team's focus and efforts are working,” he said. Erik Nordstrom, CEO of Nordstrom. “Our clients have many options and our results encourage us that we are on the right path. Looking ahead, we will continue to improve our shopping experience as we strive to maintain the positive momentum we have worked towards all year.”
“Our third quarter results demonstrate that our strategic focus on curating an attractive variety of brands is resonating with customers,” he said. Pete Nordstrom, president of Nordstrom. “Our actions throughout this year have led to this moment, and we feel well positioned for a successful holiday season and look forward to helping our customers celebrate the moments that matter. I thank our dedicated team for consistently providing the high level of service that our customers expect from Nordstrom.”
Financial data for nine months (9 million)
Nordstrom's net sales in the 9-month period of FY24 were $10.353 billion, an increase of 4.30 percent year-on-year, and total revenue reached $10.692 billion, an increase of 4.07 percent. hundred. Selling, general and administrative expenses increased to $3.68 billion in the 9 months of FY24 from $3.466 million in the same period last fiscal year.
Earnings before interest and income taxes were $252 million in the 9 months of FY24, compared to $35 million for the same period in FY23, a substantial increase of 620 percent. Basic earnings per share (EPS) in the nine months of 2024 stood at $0.78 in 2024, and diluted earnings per share at $0.76.
Perspective
For fiscal 2024, Nordstrom estimates a range of revenue, including retail sales and credit card revenue, of stable growth to 1.0 percent, and comparable sales growth of 1.0 to 2.0 percent. The company also expects EBIT margin to be 3.0 to 3.4 percent of sales, adjusted EBIT margin of 3.6 to 4.0 percent of sales and an income tax rate of approximately 27 percent in this fiscal year. It also expects EPS to be in the range of $1.40 to $1.70, and adjusted EPS to be in the range of $1.75 to $2.05.
Fiber2Fashion News Desk (SG)
