Nordstrom Inc., the American luxury department store, reported total revenues of $15.02 billion for the fiscal year 2024 (FY24), ending 1 February 2025, reflecting an increase from $14.69 billion in the previous year. Net sales rose to $14.56 billion, while net earnings surged to $294 million.
The selling, general, and administrative (SG&A) expenses of the company increased to $5.13 billion. However, the absence of Canada wind-down costs, which amounted to $284 million in the previous year, contributed to improved profitability. Consequently, earnings before interest and taxes (EBIT) more than doubled to $495 million, according to Nordstrom’s press release.
Digital sales accounted for 36 per cent of total revenue for the fiscal year. The company’s gross merchandise value (GMV) grew by 3.1 percent year-on-year (YoY). Earnings per share (EPS) also improved, with basic EPS at $1.79 and diluted EPS at $1.74.
Excluding charges related to supply chain asset impairment in Q2, accelerated technology depreciation in Q3 and Q4, and privatisation fees in Q4, adjusted EBIT stood at $593 million, or 4.1 percent of sales, while adjusted EPS was $2.17.
“Our team reacted with agility and speed to the holiday environment, responding in real time to better serve our customers and drive strong financial results,” said Pete Nordstrom, President of Nordstrom, Inc. “We consistently executed on our priorities in 2024, and we are grateful to our teams for their hard work in delivering on our purpose of helping customers feel good and look their best.”
In Q4 FY24, net sales declined by 2.1 percent, while comparable sales increased by 4.7 percent YoY. The company reported net earnings of $165 million, or $0.97 per diluted share, with an EBIT of $242 million. The adjusted EBIT totalled $273 million, with adjusted EPS at $1.10. Women’s apparel, activewear, and men’s apparel saw the strongest growth in Q4 compared to the same period last year.
For the full fiscal year, net earnings reached $294 million, with an EPS of $1.74. EBIT stood at $495 million, representing 3.4 percent of sales. However, GMV decreased slightly by 0.2 per cent.
Brand performance varied, with Nordstrom banner net sales declining by 3.7 per cent and GMV dropping by 1.0 per cent compared to Q4 FY23. Meanwhile, Nordstrom Rack net sales increased by 1.2 per cent.
Digital sales in Q4 declined by 1.8 percent but increased by 2.6 percent when excluding the impact of the 53rd week. Digital sales accounted for 38 percent of total sales in the quarter. GMV for the quarter decreased by 0.2 percent YoY.
Gross profit, as a percentage of net sales, improved by 290 basis points (bps) to 37.3 percent, driven by higher merchandise margins, better shrink performance, and reduced loyalty promotions.
“Customers responded positively to the strength of our offering across both banners in the fourth quarter,” said Erik Nordstrom, Chief Executive Officer of Nordstrom, Inc. “We maintained the momentum we built throughout the year, which resulted in full-year sales and profitability coming in at the high end of our expectations.”
