Retailer Nordstrom
What Happened: Nordstrom reported first-quarter revenue of $3.18 billion, which was down 11.6% year-over-year. The revenue total beat a Street consensus estimate of $3.12 billion, according to data from Benzinga Pro.
Adjusted earnings per share were 7 cents in the first quarter, beating a Street estimate of a loss of 8 cents per share.
Net sales for the company's flagship Nordstrom brand were down 11.4% year-over-year. Net sales for the Nordstrom Rack brand were down 11.9% year-over-year.
The first quarter saw the wind-down of the company's Canadian operations with one month of sales from the Canadian segment included in the results, compared to a full three months in the prior year.
Digital sales were down 17.4% year-over-year in the first quarter.
"We are pleased with the progress we're making against the key priorities we laid out for 2023 as we continue to enhance our overall customer experience, improve Nordstrom Rack performance, increase inventory productivity and optimize our supply chain operations," Nordstrom CEO Erik Nordstrom said.
Chief Brand Officer Pete Nordstrom said the focus on key priorities is allowing the company the opportunity to better serve customers and position the company "for more profitable growth."
Nordstrom ended the quarter with $1.4 billion in liquidity, including $581 million in cash.
The company has 347 stores versus 356 in the first quarter of the prior year.
What's Next: Nordstrom reaffirmed full-year guidance for revenue with an estimated loss of 4% to a loss of 6% projected on a year-over-year basis.
The company sees full-year earnings per share coming in a range of $1.80 to $2.20 compared to a Street estimate of $1.88.
"We're encouraged by our momentum, especially given the uncertain macroeconomic environment. We remain focused on executing with agility and delivering long-term value to our shareholders," Erik Nordstrom said.
The company did not comment on the shares held by activist investor Ryan Cohen and his push for a board shakeup, but it could be a topic during the conference call.
JWN Price Action: Nordstrom shares are up 9.8% to $16.80 after hours Wednesday.
