Nordstrom, Inc. (NYSE:JWN) has posted an unexpected first-quarter profit per share, sending its shares higher in pre-market trade on Thursday.
The department store chain reported an 11.6% slide in net sales to $3.06 billion for the quarter to April 29, 2023, as it wound down its Canadian operations to focus on its US business.
Revenue for the quarter declined 11% to $3.18 billion, ahead of the $3.12 billion expected by Wall Street. Adjusted underlying (EBITDA) earnings rose 6.6% to $177 million.
Excluding charges related to the wind-down of its Canadian stores, adjusted earnings per diluted share improved to $0.07 from a $0.06 loss a year earlier and beating the $0.08 loss forecast by the Street.
The company said Nordstrom Rack sales trends improved late in the quarter, with the strongest performance in April, primarily driven by increased penetration of strategic brands in its merchandise mix.
It said it also continued to deliver efficiencies through its supply chain initiatives, which contributed over 100 basis points of improvement in variable costs within selling, general and administrative expenses, helping to mitigate the impact of deleverage on lower sales.
"We are pleased with the progress we're making against the key priorities we laid out for 2023 as we continue to enhance our overall customer experience, improve Nordstrom Rack performance, increase inventory productivity and optimize our supply chain operations," CEO Erik Nordstrom said in a statement.
”We're encouraged by our momentum, especially given the uncertain macroeconomic environment. We remain focused on executing with agility and delivering long-term value to our shareholders."
The retailer said it still expects to report a 4% to 6% decline in full-year 2023 revenue, with adjusted earnings per share likely to be in the range of $1.80 to $2.20.
After declining 6% ahead of the release of its results on Wednesday, Nordstrom’s shares traded 3.6% higher at $15.85 ahead of the market open on Thursday.
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