Net sales

Nordstrom Announces 12.0% Increase in Net Sales in the Second Quarter of 2022

US-based luxury department store chain Nordström reported that its net sales for the second quarter (Q2) of fiscal year 2022 (FY22) increased by 12.0% the corresponding period of fiscal year 2021 (FY21).

In the three months to July 30, the company’s Nordstrom banner net sales increased 14.7%, while its gross market value (GMV) increased 14.9% year-on-year. former.

Sales for the Nordstrom Rack banner improved sequentially from the first quarter (Q1) compared to pre-pandemic sales levels at 6.3%, compared to the same period of FY21.

Nordstrom’s digital sales in the second quarter of 2022 increased 6.3% over the prior year period and accounted for 38% of its total sales in the quarter.

The retailer’s gross profit rose 65 basis points to 35.2% as a percentage of its net sales.

Driven by higher sales, Nordstrom’s earnings before interest and taxes (EBIT) were $202 million in the second quarter of 2022, compared to $151 million in the same period of FY21.

The company’s earnings per share (EPS) for the quarter was $0.77, while its adjusted EPS was $0.81.

Nordstrom CEO Erik Nordstrom said, “We delivered strong results in the second quarter, with revenue growth, increased profitability and continued progress on our strategic initiatives.

“While our quarterly results were in line with our previous outlook, customer traffic and demand slowed significantly from late June, primarily at Nordstrom Rack.

“We are adjusting our plans and taking steps to navigate this near-term dynamic, including aligning inventory and spending with recent trends, and we remain confident in our ability to achieve our long-term strategic and financial goals.”

Looking at its second-quarter results, Nordstrom lowered its outlook for revenue growth, including retail sales and credit card revenue, to 5-7% from its previous outlook of 6-8%.

The company reported net sales of $3.46 billion for the first quarter of 2022, up 18.7% year-over-year.