Nordstrom (JWN) earnings Q4 2023

Nordstrom’s holiday-quarter sales topped Wall Street’s expectations on Tuesday, but the retailer gave a muted outlook for the year ahead, and shares fell about 10% in extended trading.

The Seattle-based company said it plans to open new Nordstrom Rack stores and drive higher online and in-store sales in the coming year. Yet it said full-year revenue, including retail sales and credit cards, will range from a 2% decline to a 1% gain compared with the previous year. That forecast includes a more than 1% hit from having one fewer week in the fiscal year.

Nordstrom said it expects earnings per share of between $1.65 and $2.05 for the full year. That would be higher than its most recent fiscal year, which saw earnings per share of $1.51, the retailer said Tuesday.

Here’s what the department store operator reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

• Adjusted earnings per share: 96 cents vs. 88 cents expected
• Revenue: $4.42 billion vs. $4.39 billion expected

Like other retailers, Nordstrom has felt the squeeze from consumers becoming choosier and more price-conscious while dealing with inflation and higher interest rates. It has also struggled with company-specific problems, such as lagging sales at its off-price retailer, Nordstrom Rack, and too much of the wrong inventory, which led to higher levels of markdowns.

In the fiscal quarter that ended Feb. 3, Nordstrom’s quarterly revenue rose about 2% from $4.32 billion in the year-ago period. It attributed approximately $190 million of those sales to having an extra week in the fiscal year.

Nordstrom’s net income rose to $134 million, or 82 cents per share, from $119 million, or 74 cents per share, a year earlier. Excluding a charge associated with relocating the company’s fulfillment center, as well as other…