Nordstrom (JWN) Reports Second Quarter 2022 Results

Shoppers walk out of a Nordstrom store on May 26, 2021 in Chicago, Illinois.

Scott Olson | News Getty Images | Getty Images

Nordstrom cut its full-year financial guidance on Tuesday as the department store chain faced overstocking and slowing demand.

The retailer’s downgraded outlook came even after it reported fiscal second-quarter earnings and sales that beat analysts’ estimates. Its shares fell 13% in extended trading.

“Customer traffic and demand have declined significantly since the end of June, predominantly at Nordstrom Rack,” CEO Eric Nordstrom said in a press release. “We are adjusting our plans and taking steps to navigate these dynamics in the short term, including bringing inventories and costs in line with recent trends.”

Nordstrom now sees annual sales, including credit card revenue, at 5% to 7% from the previous range of 6% to 8%. He calls for adjusted earnings per share to be in the range of $2.30 to $2.60, compared to the previous forecast of $3.20 to $3.50.

Here are Nordstrom’s fiscal second quarter results compared to what analysts expected based on Refinitiv estimates:

  • Earnings per share: 81 cents adjusted vs. expected 80 cents
  • Revenue: $4.1 billion vs. $3.97 billion expected

Nordstrom’s net income for the three-month period ended July 30 rose to $126 million, or 77 cents per share, from $80 million, or 49 cents per share, a year earlier.

Sales rose to $4.10 billion from $3.66 billion.

This story is evolving. Please stay tuned for updates.

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