SEATTLE, Jan. 19,
2023 /PRNewswire/ -- Nordstrom, Inc. (NYSE: JWN)
today announced a net sales decrease of 3.5 percent for the
nine-week holiday period ended December 31,
2022, compared with the nine weeks ended January 1, 2022. For the Nordstrom banner, net
sales decreased 1.7 percent, while net sales at the Nordstrom Rack
banner decreased 7.6 percent.
"The holiday season was highly promotional, and sales were
softer than pre-pandemic levels. While we continue to see greater
resilience in our higher income cohorts, it is clear that consumers
are being more selective with their spending given the broader
macro environment," said Erik
Nordstrom, chief executive officer of Nordstrom, Inc.
"Still, our team executed well, and we enter 2023 in a stronger
position as we prioritized starting the new fiscal year with clean
inventory levels, even if this required more markdowns than
planned."
The Company took additional markdowns in order to finish the
year in a healthy and current inventory position. The Company
expects year-end inventory levels to be down by a double-digit
percentage compared with last year, and roughly at 2019 levels.
"Having a healthier inventory level and mix positions us well to
react quickly to changing consumer demand," said Pete Nordstrom, president and chief brand
officer of Nordstrom, Inc. "Given the continued uncertain
environment, we remain focused on executing with flexibility and
agility, including conservative buy plans and faster inventory
turns. We continue to enhance our customer experience with our
Closer to You strategy, which links our digital and physical
assets. Additionally, we are further optimizing our supply chain to
improve the customer experience and expense efficiency, and we
expect these initiatives will continue to deliver significant
benefits in 2023."
Based on holiday results, the Company has updated its fiscal
2022 outlook as follows:
- Revenue growth, including retail sales and credit card
revenues, at the low-end of its previously issued outlook of 5 to 7
percent
- Earnings before interest and taxes ("EBIT") margin, as a
percent of sales, of 2.8 to 3.1 percent, compared with its prior
outlook of 4.1 to 4.4 percent, reflecting lower than expected gross
margin as the Company took additional markdowns to finish the year
in a healthy inventory position; SG&A expenses continue to
reflect progress on the Company's supply chain optimization
initiatives and ongoing expense discipline
- Adjusted EBIT margin of 3.1 to 3.3 percent, compared with its
prior outlook of 4.3 to 4.7 percent1
- Income tax rate in line with its previously issued outlook of
approximately 27 percent
- Earnings per diluted share ("EPS"), excluding the impact of
share repurchase activity, if any, of $1.33 to $1.53,
compared with its prior outlook of $2.13 to $2.43
- Adjusted EPS, excluding the impact of share repurchase
activity, if any, of $1.50 to
$1.70, compared with its prior
outlook of $2.30 to $2.601
- Leverage ratio slightly above 3.0 times by year-end, compared
with its prior outlook of below 2.9 times
The Company is scheduled to report its fourth quarter and
full-year 2022 financial results after the close of the financial
markets on March 2, 2023. Additional
detail on the Company's financial performance and 2023 outlook will
be provided at that time.
ABOUT NORDSTROM
At Nordstrom, Inc. (NYSE: JWN), we exist to help our customers
feel good and look their best. Since starting as a shoe store in
1901, how to best serve customers has been at the center of every
decision we make. This heritage of service is the foundation we're
building on as we provide convenience and true connection for our
customers. Our digital-first platform enables us to serve customers
when, where and how they want to shop – whether that's in-store at
more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack
locations or digitally through our Nordstrom and Rack apps and
websites. Through it all, we remain committed to leaving the world
better than we found it.
Certain statements in this press release contain or may
suggest "forward-looking" information (as defined in the Private
Securities Litigation Reform Act of 1995) that involves risks and
uncertainties that could cause results to be materially different
from expectations. The words "will," "may," "designed to,"
"outlook," "believes," "should," "targets," "anticipates,"
"assumptions," "plans," "expects" or "expectations," "intends,"
"estimates," "forecasts," "guidance" and similar expressions
identify certain of these forward-looking statements. The Company
also may provide forward-looking statements in oral statements or
other written materials released to the public. All statements
contained or incorporated in this press release or in any other
public statements that address such future events or expectations
are forward-looking statements. Important factors that could cause
actual results to differ materially from these forward-looking
statements are detailed in the Company's Annual Report on Form 10-K
for the fiscal year ended January 29, 2022 and its Form 10-Qs
for the fiscal quarters ended April 30, 2022, July 30,
2022 and October 29, 2022. These
forward-looking statements are not guarantees of future performance
and speak only as of the date made, and, except as required by law,
the Company undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events, new
information or future circumstances. In addition, the actual
timing, price, manner and amounts of future share repurchases, if
any, will be subject to the discretion of our board of directors,
contractual commitments, market and economic conditions and
applicable Securities and Exchange Commission rules.
____________________
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1 Adjusted EBIT margin and
adjusted EPS are non-GAAP financial measures. Refer to the
"Forward-Looking Non-GAAP Measures" section of this release for
additional information as well as reconciliations between the
Company's GAAP and non-GAAP financial expectations
|
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NORDSTROM, INC.
FISCAL YEAR 2022
FORWARD-LOOKING NON-GAAP MEASURES
(NON-GAAP FINANCIAL
MEASURES)
(unaudited)
Our adjusted EBIT margin and adjusted EPS outlook for
fiscal year 2022 excludes the impacts from certain items that we do
not consider representative of our core operating performance.
These items include a supply chain technology and related asset
impairment charge recognized in the third quarter of 2022, Trunk
Club wind-down costs recognized in the first half of 2022 and the
gain on the sale of our interest in a corporate office building
recognized in the first quarter of 2022.
The following is a reconciliation of expected net earnings as a
percent of net sales to expected adjusted EBIT margin included
within our fiscal year 2022 outlook:
|
52 Weeks Ending
January 28, 2023
|
|
Low
|
|
High
|
Expected net
earnings as a % of net sales
|
1.4 %
|
|
1.6 %
|
Income tax
expense
|
0.5 %
|
|
0.6 %
|
Interest expense,
net
|
0.9 %
|
|
0.9 %
|
Expected earnings
before interest and income taxes as a % of net sales
|
2.8 %
|
|
3.1 %
|
|
|
|
|
Supply chain
impairments
|
0.5 %
|
|
0.4 %
|
Trunk Club wind-down
costs
|
0.1 %
|
|
0.1 %
|
Gain on sale of
interest in a corporate office building
|
(0.3 %)
|
|
(0.3 %)
|
Expected adjusted
EBIT margin
|
3.1 %
|
|
3.3 %
|
The following is a reconciliation of expected EPS to expected
adjusted EPS included within our fiscal year 2022 outlook:
|
52 Weeks Ending
January 28, 2023
|
|
Low
|
|
High
|
Expected
EPS
|
$
1.33
|
|
$
1.53
|
Supply chain
impairments
|
0.43
|
|
0.43
|
Trunk Club wind-down
costs
|
0.11
|
|
0.11
|
Gain on sale of
interest in a corporate office building
|
(0.31)
|
|
(0.31)
|
Income tax impact on
adjustments
|
(0.06)
|
|
(0.06)
|
Expected adjusted
EPS
|
$
1.50
|
|
$
1.70
|
INVESTOR
CONTACT:
|
|
Sara Penner
|
|
|
Nordstrom,
Inc.
|
|
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InvRelations@Nordstrom.com
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MEDIA
CONTACT:
|
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Stephanie
Corzett
|
|
|
Nordstrom,
Inc.
|
|
|
NordstromPR@Nordstrom.com
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SOURCE Nordstrom, Inc.