The US retailer Nordstrom Inc. also had to accept a significant drop in sales in the second quarter of the 2023/24 fiscal year. However, the net profit increased slightly. This emerges from an interim report that the company published on Thursday evening.
In the most recent quarter, which ended on July 29, group sales reached $3.77 billion (EUR 3.49 billion). It was thus 7.9 percent below the corresponding level of the previous year. Retail sales fell 8.3 percent to $3.66 billion.
According to the company, in addition to the slump in consumption in North America, the cessation of business activities in Canada and a postponed discount campaign contributed to the significant drop in sales. Adjusted for these factors, sales fell by around four percent, the retailer said.
Measures to increase efficiency in the supply chain, lower freight costs and income from real estate sales meant that earnings before interest and taxes (EBIT) fell only 5 percent to $192 million. Thanks to lower tax burdens, the reported net profit of 137 million US dollars (127 million euros) exceeded the corresponding level of the previous year by almost nine percent.
The most recent results gave management no reason to change the forecast for the full financial year. A drop in sales of 4.0 to 6.0 percent is therefore still expected. The target range for earnings per share remains between $0.60 and $1.00.
