Nordstrom, with operations in southwest Cedar Rapids, reported third-quarter earnings that fell substantially below analysts’ estimates, with the apparel retailer saying it needs to “move faster” to capitalize on its strengths and increase market share.
The report, released Nov. 23, showed Nordstrom finished the third quarter ending Oct. 30 with net earnings of $64 million, or 39 cents per diluted share. Earnings before interest and taxes (EBIT) totaled $127 million..
Sales for the quarter totaled $3.6 billion, up 18 percent from the same period in 2020.
Analysts from FastSec had predicted earnings of 57 cents per diluted share on sales of $3.5 billion.
The company’s annual Anniversary Sale, which began about a week before the third quarter reporting period closed, had a positive impact of approximately 200 basis points on net sales compared with fiscal 2019, Nordstrom reported.
“We have long benefited from a commitment to customer service, new and compelling merchandise, innovative brand partnerships and interconnected digital and physical assets,” said Erik Nordstrom, chief executive officer of Nordstrom. “However, we need to move faster to capitalize on these strengths and profitably grow market share. We’re taking action to improve performance at Nordstrom Rack, including optimizing inventory levels, better balancing price points and increasing brand awareness. Work is also underway to improve merchandise margin across the Company and ensure we have the visibility and flexibility we need to serve our customers seamlessly, despite global supply chain challenges.”
Nordstrom also reaffirmed its expectation that revenue, including retail sales and credit card revenues, is expected to grow more than 35 percent over fiscal 2020.
