US retailer Nordstrom's net sales surge 5.1% in Q1 FY24

The Nordstrom banner experienced a modest net sales increase of 0.6 per cent and a 1.8 per cent rise in comparable sales, with GMV up by 0.3 per cent. In contrast, Nordstrom Rack showed impressive growth, with net sales surging by 13.8 per cent and comparable sales climbing by 7.9 per cent compared to the same period last year.

Digital sales slightly decreased by 0.2 per cent year-over-year, representing 34 per cent of total sales during the quarter. Despite the growth in overall sales, the company reported a decline in gross profit as a percentage of net sales, which fell to 31.6 per cent, a decrease of 225 basis points compared to Q1 FY23. Additionally, Nordstrom reported a net loss of $39 million, or a loss per share of $0.24, the company said in a press release.

Ending inventory for the quarter decreased by 6.3 per cent compared to the same period in fiscal 2023, against a backdrop of a 5.1 per cent increase in sales. Selling, general, and administrative expenses, as a percentage of net sales, decreased by 20 basis points, reaching 35.8 per cent.

"The positive sales growth we saw across the company in the first quarter is very encouraging, and we're particularly excited about the progress that our Rack banner is making," said Erik Nordstrom, chief executive officer of Nordstrom. "While we're pleased with our topline growth, profitability fell short of our expectations. Looking ahead, our strong sales performance gives us momentum heading into the rest of the year and the confidence to reaffirm our 2024 guidance."

Fibre2Fashion News Desk (DP)