Department store chain Nordstrom has reported net earnings of $137m for the second quarter of fiscal year (FY) 2023, an increase of 8.7% compared with $126m a year ago.
The retailer’s earnings per diluted share (EPS) increased to $0.84 from $0.77 a year ago.
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For the quarter ended 29 July 2023, the company’s gross profit, as a percentage of net sales, declined by 20 basis points (bps) to 35% from 35.2% last year.
Nordstrom recorded net sales of $3.66bn during the quarter, down 8.3% from $3.99bn in the prior year’s quarter, primarily due to the scaling down of its Canadian operation.
During the quarter, net sales of the Nordstrom and Nordstrom Rack banners decreased 10.1% and 4.1% respectively compared with the same period of last year.
Digital sales decreased 12.9% compared with the second quarter of last year.
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By GlobalDataIts selling, general and administrative (SG&A) expenses, as a percentage of net sales, remained flat at 32.8%, driven by the improvements in variable costs from supply chain efficiency initiatives and other factors.
The company’s earnings before interest and taxes (EBIT) were $192m, down from $202m in the same period a year ago.
The gross merchandise value (GMV) of Nordstrom also fell 8.5% during the quarter compared with the prior year’s quarter.
Nordstrom CEO Erik Nordstrom said: “We’ve worked hard to improve our operating model and our solid results reflect the continued progress we made against our top priorities to improve Nordstrom Rack performance, increase inventory productivity and deliver efficiencies through supply chain optimisation.
“These 2023 priorities improve the way we operate and drive profitability in the near term and better position us to succeed and deliver value to our shareholders in the long-term. Looking ahead, we remain confident in our ability to deliver on these priorities, all while keeping the customer at the centre of everything we do.”
