The US trading group Nordstrom Inc. closed the second quarter of the 2022/23 financial year with growth in sales and earnings. However, the company lowered its full-year guidance Tuesday night given deteriorating market conditions. The retailer has recently achieved “solid results” and met its own expectations, CEO Erik Nordstrom said in a statement. Since the end of June, however, “a significant drop in customer frequency and demand” has been observed.
For the second quarter ended July 30, consolidated revenue was $3.99 billion. This corresponded to an increase of 12.2 percent compared to the same period of the previous year. According to the retailer, the menswear category saw the highest gains, but sales of shoes, women’s clothing and cosmetics also grew by double-digit percentages as customers “updated their wardrobes and returned to social events.”
Thanks to the strong sales growth, the Group was able to more than compensate for higher discounts and increased costs. The net profit jumped compared to the same quarter last year by 57.5 percent to 126 million US dollars (127 million euros).
However, due to the recent downturn in consumer sentiment, the company is now more cautious about the future. For the full fiscal year, management is now only forecasting sales growth of five to seven percent, after previously expecting an increase of six to eight percent. The target range for diluted earnings per share was lowered from $3.38 to $3.68 to $2.45 to $2.75.