Nordstrom, Inc. (NYSE:JWN) shares fell around 0.75% to US$14.79 in premarket trade on Wednesday after the retailer reported mixed third-quarter financial results.
For the three months ended October 28, 2023, Nordstrom reported revenue of $3.3 billion, below estimates of $3.39 billion.
Adjusted earnings per share (EPS) of $0.25, however, topped estimates of $0.13.
The retailer said its net sales decreased 6.8% year over year and gross merchandise value was down 7.1%.
Its 3Q results included a 270-basis point negative impact from the wind-down of its Canadian operators.
This was offset by a 200-basis point positive impact from Anniversary Sale timing, which shifted from 2Q to 3Q.
Excluding the impacts of its Canadian wind-down and Anniversary Sale timing, Nordstrom said its net sales would have been down 6% year over year.
Shares of the company initially fell 2.6% to US$14.52 shortly after the release of the report on Tuesday.
"In the third quarter we continued to make progress against our priorities, and we're especially pleased with the resulting improvements in gross margin and earnings," Nordstrom CEO Erik Nordstrom said. "Given continued uncertainty and softening consumer spend, we're remaining agile and focused on serving our customers."
Nordstrom also updated its profit outlook for fiscal 2023.
It continues to expect revenue to decline 4% to 6% from fiscal 2022 but now forecasts adjusted EPS in the range of $1.90 to $2.10, compared to its earlier forecast of $1.80 to $2.20.
This is in line with the consensus analyst expectation of a 5.5% year-over-year decline in revenue to $14.68 billion and earnings per share of $2.01.
A cash dividend of US$0.19 per share for the quarter was announced and is expected to be distributed to shareholders on December 13.
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Updated for share price changes and dividend information