The US retailer Nordstrom Inc. significantly improved its sales in the first three months of the 2022/23 financial year and subsequently raised its forecasts. “In the first quarter, we delivered strong revenue growth through substantial increases across all categories and regions,” said CEO Erik Nordstrom in a statement Tuesday evening. “Importantly, we made progress on our strategic actions and continued focus on improving profitability to meet our financial goals.”
Overall, group sales in the months of February to April amounted to 3.47 billion US dollars (3.26 billion euros). It was thus 18.7 percent above the level of the same quarter of the previous year. According to the company, the strongest growth was in the core categories of women’s and men’s clothing as well as in shoes and designer fashion. There, the demand after the lifting of the corona protective measures had risen sharply: “Customers have refreshed their wardrobe for certain occasions such as social events, travel and returning to the office,” explained the retailer.
Thanks to the significant increase in sales and higher margins, the company was able to significantly improve its results: Net income was 20 million US dollars (19 million euros), after a loss of 166 million US dollars in the same quarter last year. Last but not least, the group owed its return to profitability to special income of 51 million US dollars from the sale of a real estate investment.
In view of the pleasing development in the first three months, management raised its forecast for the full financial year. It now expects sales growth of six to eight percent compared to the previous year. Previously, only an increase of five to seven percent had been promised. The target range for diluted earnings per share was raised from $3.15 to $3.50 to $3.38 to $3.68. The effects of possible buybacks are not taken into account.