The company reported fiscal first-quarter sales that were ahead of analysts' expectations and hiked its full-year outlook.
Fiscal 2022, which includes credit card sales, is now expected to see revenue of up to 8% compared with a previous range of up to 5%.
It expects earnings per share to be in a range of $3.38 to $3.68 up from a previous range of $3.15 to $3.50. It expects to make between $3.20 and $3.50 a share on an adjusted basis.
Its shares increased in after-hours trading.
The optimistic outlook stands in contrast to retailers like Target and others that have recently lowered their annual forecasts due to rising costs. The other retailers have been operating in tandem with Nordstrom.
As many retailers saw their sales rebound to above pre-pandemic levels, Nordstrom was still working to do so. As retailers such as Macy are more difficult to compare, Nordstrom is building off of a lower base.
As invitations resume for weddings, reunions and other social gatherings, the company has been able to take advantage of demand from people who are shopping for long-awaited occasions.
The retailer's adjusted per-share loss was slightly wider than what analysts had been looking for.
Based on a Refinitiv survey, we know how Nordstrom did in its fiscal first quarter.
Net income for the three-month period ended April 30 was $20 million, or 13 cents a share, compared with a net loss of $166 million, or $1.05 per share, a year earlier.
Excluding the gain from the sale of the company's interest in a corporate office building and an impairment charge related to a Trunk Club property, the company lost 6 cents a share. The per-share loss was wider than what analysts had been looking for.
The personal styling platform that it acquired back in 2014, called Trunk Club, will be shutting down. The company said it will focus resources on its own styling services.
Total revenue, including credit card sales, grew to $3.57 billion from $3 billion a year earlier. That was better than expectations of $3.28 billion.
Net sales at the banner grew at a faster rate than pre-pandemic levels. The company said that net sales rose but were still below last year.
During the Pandemic, off-price chains such as TJX and Ross Stores have been able to get merchandise from other retail brands, which has made it difficult for the off-price chain to compete. In April, Nordstrom brought in a bench of executives with experience in off-price retail to help it streamline ownership of the Rack business.
By increasing our supply of premium brands and fine tuning our assortment to better align with customer needs, we are achieving a better balance of price points at the Rack.
Digital sales were flat on a year-over-year basis, as shoppers trimmed their online spending and headed back to stores. E-commerce accounted for 39% of total sales, compared with 46% a year earlier.
The flagship store in New York City performed the best during the quarter, as workers returned to nearby office buildings and tourist traffic rebounded. The company said that urban store sales returned to pre-pandemic levels.
The company hasn't seen a reduction in customer spending because of inflationary cost pressures. She said on the conference call that it was due to the higher income profile of its customers.
The company ordered extra goods to build a string stock of merchandise ahead of its annual anniversary sale, which led to an increase in inventory levels at the end of the three-month period.
Allbirds will be one of the sustainable sneaker brand's few third-party retail partners, as well as being one of the first shoes to be sold by Nordstrom.
The story has been corrected to say that Allbirds shoes will soon be sold by Nordstrom. The timing of the announcement was misstated.
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