1. News
May 25, 2022

Nordstrom registers 18.7% increase in net sales in Q1 2022

The retailer expects earnings of between $3.38 and $3.68 for each of its shares for the full year.

US-based luxury goods retailer Nordstrom has recorded net sales of $3.46bn in the first quarter (Q1) of the fiscal year 2022 (FY22), up by 18.7% year-on-year and exceeding pre-pandemic sales levels.

The company’s gross merchandise value (GMV) for the three months to 30 April increased by 19.6% compared with the prior-year period.

Net sales for the Nordstrom and Nordstrom Rack banners increased by 23.5% and 10.3% respectively, while digital sales accounted for 39% of the retailer’s total sales in Q1.

Nordstrom recorded net earnings of $20m during the quarter compared with a net loss of $166m in the same period of the prior year.

The company’s earnings per diluted share (EPS) were $0.13 against a loss of $1.05 for each share in Q1 2021.

Its Q1 gross profit was 32.8% of its net sales, up by 190 basis points from the previous year, while its earnings before interest and tax (EBIT) for the quarter were $73m.

Nordstrom CEO Erik Nordstrom said: “Our focus on serving the customer through our interconnected model with Nordstrom and Nordstrom Rack, a scaled digital platform and a strong store fleet positioned us to capitalise on demand from customers who shopped for long-awaited occasions and refreshed their closets.

“In the first quarter, we drove strong topline growth with broad-based improvement across core categories and geographies.

“Importantly, we made progress on our strategic initiatives and continue to focus on increasing profitability on the path to achieving our financial targets.”

For the full year, Nordstrom expects its revenue, including retail sales and credit card revenues, to grow by 6% to 8% against FY21 and has forecast EPS of $3.38 to $3.68.

The retailer ended Q1 with 356 stores, including 249 Nordstrom Rack outlets, two Last Call outlets, 100 full-prices stores and seven Nordstrom Local locations.