Shares of Nordstrom Inc (NYSE: JWN) are up 35% in the extended trading after the luxury department store chain reported Q4 results that handily beat Street expectations and offered upbeat future guidance despite the ongoing supply constraints.
Quarterly profit came in at $200 million that translates to $1.23 a share.
Nordstrom had posted $33 million in profit or 21 cents a share a year-ago.
At $4.49 billion, total revenue jumped 23% YoY, as per the earnings press release.
FactSet consensus was for $1.01 of EPS on $4.36 billion in revenue.
Digital made up 44% of total quarterly revenue and was down 1.0% year-over-year.
Gross merchandise value noted an annualised increase of 24%.
Chief executive’s remarks
According to Nordstrom, its of-late underperforming business, Rack, also showed signs of improvement in the recent quarter. In the earnings press release, CEO Erik Nordstrom said:
We advanced our strategic initiatives this quarter, with sequential sales improvement, strong digital growth and a significant increase in profitability. Our primary focus is on three areas: improving Nordstrom Rack performance, increasing profitability and optimising our supply chain and inventory flow.
For fiscal 2022, Nordstrom forecasts a 5.0% to 7.0% annualised growth in total revenue on up to $3.50 of per-share earnings, adjusted for share buybacks. In comparisons, experts had forecast 3.7% YoY increase in total revenue on $2.01 of EPS. President Pete Nordstrom noted:
We drove a significant increase in merchandise margin this quarter, as we engaged customers through our expanded holiday gift offering, while reducing promotion activity. Looking ahead, we’re focused on more effectively balancing inventory with demand while increasing efficiency throughout our network and delivering newness and selection to customers.
Including the after-hours price action, the stock is now up more than 10% for the year.
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