Washington | 001-15059 | 91-0515058 | ||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common stock, without par value | JWN | New York Stock Exchange | ||||||
Common stock purchase rights | New York Stock Exchange |
Nordstrom earnings release dated August 27, 2024 relating to the Company's Second Quarter Results |
|||||
Nordstrom earnings call commentary relating to the Company's Second Quarter Results and 2024 financial outlook |
|||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
NORDSTROM, INC. | |||||
(Registrant) | |||||
/s/ Catherine R. Smith | |||||
Catherine R. Smith | |||||
Chief Financial Officer | |||||
City | Location | Square Footage (000s) |
Timing of Opening | |||||||||||||||||
Nordstrom Rack | ||||||||||||||||||||
Pinole, CA | Pinole Vista Crossing | 23 | March 7, 2024 | |||||||||||||||||
Snellville, GA | Presidential Markets | 35 | March 7, 2024 | |||||||||||||||||
Kennesaw, GA | Barrett Place | 25 | March 21, 2024 | |||||||||||||||||
Macedonia, OH | Macedonia Gateway | 28 | April 11, 2024 | |||||||||||||||||
Gilroy, CA | Gilroy Crossing | 25 | April 25, 2024 | |||||||||||||||||
Jacksonville Beach, FL | South Beach Regional | 30 | May 2, 2024 | |||||||||||||||||
Queen Creek, AZ | Queen Creek Marketplace | 28 | May 16, 2024 | |||||||||||||||||
Elk Grove, CA | The Ridge Elk Grove | 25 | May 30, 2024 | |||||||||||||||||
Wheaton, IL | Danada Square East | 29 | May 30, 2024 | |||||||||||||||||
Oceanside, CA | Pacific Coast Plaza | 32 | June 6, 2024 | |||||||||||||||||
Bay Shore, NY | Gardiner Manor Mall | 24 | June 13, 2024 |
City | Location | Square Footage (000s) |
Timing of Opening | |||||||||||||||||
Nordstrom Rack | ||||||||||||||||||||
San Antonio, TX | Bandera Pointe | 25 | September 5, 2024 | |||||||||||||||||
Franklin, TN | Cool Springs Market | 24 | September 5, 2024 | |||||||||||||||||
San Mateo, CA | Bridgepointe Shopping Center | 36 | September 12, 2024 | |||||||||||||||||
San Diego, CA | Clairemont Town Square | 26 | September 19, 2024 | |||||||||||||||||
Mooresville, NC | Mooresville Crossing | 28 | September 26, 2024 | |||||||||||||||||
Houston, TX | Meyerland Plaza | 34 | September 26, 2024 | |||||||||||||||||
Mason, OH | Deerfield Towne Center | 30 | October 3, 2024 | |||||||||||||||||
Fort Myers, FL | Bell Tower | 31 | October 10, 2024 | |||||||||||||||||
Raleigh, NC | Triangle Town Place | 32 | October 10, 2024 | |||||||||||||||||
Noblesville, IN | Hamilton Town Center | 25 | October 17, 2024 | |||||||||||||||||
Omaha, NE | Village Pointe | 30 | October 24, 2024 | |||||||||||||||||
Tarzana, CA | Village Walk | 25 | November 1, 2024 | |||||||||||||||||
Davis, CA | The Davis Collection | 25 | Spring 2025 | |||||||||||||||||
Matthews, NC | Sycamore Commons | 25 | Spring 2025 | |||||||||||||||||
Geneva, IL | Randall Square | 25 | Spring 2025 | |||||||||||||||||
Manalapan Township, NJ | Manalapan Commons | 26 | Spring 2025 | |||||||||||||||||
Apple Valley, MN | Fischer Marketplace | 30 | Spring 2025 | |||||||||||||||||
Houston, TX | Westchase Shopping Center | 30 | Spring 2025 | |||||||||||||||||
Morrisville, NC | Park West Village | 25 | Spring 2025 | |||||||||||||||||
Coral Springs, FL | Pine Ridge Square | 31 | Fall 2025 | |||||||||||||||||
Surprise, AZ | Prasada North | 26 | Fall 2025 |
August 3, 2024 | July 29, 2023 | ||||||||||
Nordstrom | |||||||||||
Nordstrom |
93 | 94 | |||||||||
Nordstrom Local service hubs | 6 | 7 | |||||||||
ASOS | Nordstrom | — | 1 | |||||||||
Nordstrom Rack | |||||||||||
Nordstrom Rack |
269 | 247 | |||||||||
Last Chance clearance stores | 2 | 2 | |||||||||
Total | 370 | 351 | |||||||||
Gross store square footage | 26,563,000 | 26,348,000 |
Quarter Ended | Six Months Ended | ||||||||||||||||
August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||||||||||||
Net sales | $3,785 | $3,662 | $7,006 | $6,726 | |||||||||||||
Credit card revenues, net | 109 | 110 | 223 | 227 | |||||||||||||
Total revenues | 3,894 | 3,772 | 7,229 | 6,953 | |||||||||||||
Cost of sales and related buying and occupancy costs |
(2,401) | (2,380) | (4,604) | (4,407) | |||||||||||||
Selling, general and administrative expenses | (1,303) | (1,200) | (2,456) | (2,304) | |||||||||||||
Canada wind-down costs | — | — | — | (309) | |||||||||||||
Earnings (loss) before interest and income taxes | 190 | 192 | 169 | (67) | |||||||||||||
Interest expense, net | (26) | (26) | (53) | (54) | |||||||||||||
Earnings (loss) before income taxes | 164 | 166 | 116 | (121) | |||||||||||||
Income tax (expense) benefit | (42) | (29) | (33) | 54 | |||||||||||||
Net earnings (loss) | $122 | $137 | $83 | ($67) | |||||||||||||
Earnings (loss) per share: | |||||||||||||||||
Basic | $0.74 | $0.85 | $0.50 | ($0.42) | |||||||||||||
Diluted | $0.72 | $0.84 | $0.49 | ($0.42) | |||||||||||||
Weighted-average shares outstanding: | |||||||||||||||||
Basic | 164.1 | 161.7 | 163.6 | 161.3 | |||||||||||||
Diluted | 168.8 | 163.2 | 167.3 | 161.3 | |||||||||||||
Percent of net sales: | |||||||||||||||||
Gross profit | 36.6 | % | 35.0 | % | 34.3 | % | 34.5 | % | |||||||||
Selling, general and administrative expenses | 34.4 | % | 32.8 | % | 35.0 | % | 34.3 | % | |||||||||
Earnings (loss) before interest and income taxes | 5.0 | % | 5.3 | % | 2.4 | % | (1.0 | %) |
August 3, 2024 | February 3, 2024 | July 29, 2023 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $679 | $628 | $885 | ||||||||
Accounts receivable, net | 277 | 334 | 246 | ||||||||
Merchandise inventories | 2,144 | 1,888 | 1,979 | ||||||||
Prepaid expenses and other current assets | 348 | 286 | 400 | ||||||||
Total current assets | 3,448 | 3,136 | 3,510 | ||||||||
Land, property and equipment (net of accumulated depreciation of $8,507, $8,251 and $8,254) |
3,063 | 3,177 | 3,181 | ||||||||
Operating lease right-of-use assets | 1,353 | 1,359 | 1,381 | ||||||||
Goodwill | 249 | 249 | 249 | ||||||||
Other assets | 530 | 523 | 480 | ||||||||
Total assets | $8,643 | $8,444 | $8,801 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $1,533 | $1,236 | $1,434 | ||||||||
Accrued salaries, wages and related benefits | 289 | 244 | 375 | ||||||||
Current portion of operating lease liabilities | 247 | 240 | 224 | ||||||||
Other current liabilities | 1,149 | 1,102 | 1,264 | ||||||||
Current portion of long-term debt | — | 250 | 249 | ||||||||
Total current liabilities | 3,218 | 3,072 | 3,546 | ||||||||
Long-term debt, net | 2,615 | 2,612 | 2,609 | ||||||||
Noncurrent operating lease liabilities | 1,370 | 1,377 | 1,392 | ||||||||
Other liabilities | 492 | 535 | 580 | ||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity: | |||||||||||
Common stock, no par value: 1,000 shares authorized; 164.2, 162.4 and 161.7 shares issued and outstanding |
3,458 | 3,418 | 3,388 | ||||||||
Accumulated deficit | (2,518) | (2,578) | (2,717) | ||||||||
Accumulated other comprehensive gain | 8 | 8 | 3 | ||||||||
Total shareholders’ equity | 948 | 848 | 674 | ||||||||
Total liabilities and shareholders’ equity | $8,643 | $8,444 | $8,801 |
Six Months Ended | ||||||||
August 3, 2024 | July 29, 2023 | |||||||
Operating Activities | ||||||||
Net earnings (loss) | $83 | ($67) | ||||||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization expenses | 305 | 285 | ||||||
Canada wind-down costs | — | 220 | ||||||
Asset impairment | 51 | — | ||||||
Right-of-use asset amortization | 92 | 86 | ||||||
Deferred income taxes, net | (27) | (17) | ||||||
Stock-based compensation expense | 41 | 28 | ||||||
Other, net | (12) | (47) | ||||||
Change in operating assets and liabilities: | ||||||||
Merchandise inventories | (157) | (78) | ||||||
Other current and noncurrent assets | 9 | (81) | ||||||
Accounts payable | 172 | 99 | ||||||
Accrued salaries, wages and related benefits | 45 | 89 | ||||||
Lease liabilities | (130) | (134) | ||||||
Other current and noncurrent liabilities | 56 | 82 | ||||||
Net cash provided by operating activities | 528 | 465 | ||||||
Investing Activities | ||||||||
Capital expenditures | (204) | (225) | ||||||
Decrease in cash and cash equivalents resulting from Canada deconsolidation | — | (33) | ||||||
Proceeds from the sale of assets and other, net | 10 | 29 | ||||||
Net cash used in investing activities | (194) | (229) | ||||||
Financing Activities | ||||||||
Principal payments on long-term debt | (250) | — | ||||||
Change in cash book overdrafts | 30 | 18 | ||||||
Cash dividends paid | (62) | (61) | ||||||
Payments for repurchase of common stock | — | (1) | ||||||
Proceeds from issuances under stock compensation plans | 9 | 13 | ||||||
Other, net | (10) | (7) | ||||||
Net cash used in financing activities | (283) | (38) | ||||||
Net increase in cash and cash equivalents | 51 | 198 | ||||||
Cash and cash equivalents at beginning of period | 628 | 687 | ||||||
Cash and cash equivalents at end of period | $679 | $885 |
Quarter Ended | Six Months Ended | ||||||||||||||||
August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||||||||||||
Net earnings (loss) | $122 | $137 | $83 | ($67) | |||||||||||||
Income tax expense (benefit) | 42 | 29 | 33 | (54) | |||||||||||||
Interest expense, net | 26 | 26 | 53 | 54 | |||||||||||||
Earnings (loss) before interest and income taxes | 190 | 192 | 169 | (67) | |||||||||||||
Supply chain asset impairment and other | 54 | — | 54 | — | |||||||||||||
Canada wind-down costs | — | — | — | 309 | |||||||||||||
Adjusted EBIT | 244 | 192 | 223 | 242 | |||||||||||||
Depreciation and amortization expenses | 150 | 141 | 302 | 285 | |||||||||||||
Amortization of developer reimbursements | (15) | (17) | (29) | (35) | |||||||||||||
Adjusted EBITDA | $379 | $316 | $496 | $492 | |||||||||||||
Net sales | $3,785 | $3,662 | $7,006 | $6,726 | |||||||||||||
Net earnings (loss) as a % of net sales |
3.2 | % | 3.8 | % | 1.2 | % | (1.0 | %) | |||||||||
EBIT margin % | 5.0 | % | 5.3 | % | 2.4 | % | (1.0 | %) | |||||||||
Adjusted EBIT margin % | 6.4 | % | 5.3 | % | 3.2 | % | 3.6 | % |
Quarter Ended | Six Months Ended | ||||||||||||||||
August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||||||||||||
Diluted EPS | $0.72 | $0.84 | $0.49 | ($0.42) | |||||||||||||
Supply chain asset impairment and other | 0.32 | — | 0.32 | — | |||||||||||||
Canada wind-down costs | — | — | — | 1.91 | |||||||||||||
Income tax impact on adjustments1 |
(0.08) | — | (0.08) | (0.58) | |||||||||||||
Adjusted EPS | $0.96 | $0.84 | $0.73 | $0.91 | |||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||
August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||||||||||||
Net sales: | |||||||||||||||||
Nordstrom | $2,514 | $2,491 | $4,554 | $4,518 | |||||||||||||
Nordstrom Rack | 1,271 | 1,171 | 2,452 | 2,208 | |||||||||||||
Total net sales | $3,785 | $3,662 | $7,006 | $6,726 | |||||||||||||
Net sales increase (decrease): | |||||||||||||||||
Nordstrom | 0.9 | % | (10.1 | %) | 0.8 | % | (10.7 | %) | |||||||||
Nordstrom Rack | 8.8 | % | (4.1 | %) | 11.1 | % | (7.9 | %) | |||||||||
Total Company | 3.4 | % | (8.3 | %) | 4.2 | % | (9.8 | %) | |||||||||
Digital sales as % of total net sales1 |
37 | % | 36 | % | 35 | % | 36 | % |
52 Weeks Ending February 1, 2025 |
|||||||||||
Low | High | ||||||||||
Expected net earnings as a % of net sales | 1.7% | 2.0% | |||||||||
Income tax expense | 0.6% | 0.7% | |||||||||
Interest expense, net | 0.7% | 0.7% | |||||||||
Expected EBIT as a % of net sales | 3.0% | 3.4% | |||||||||
Supply chain asset impairment and other | 0.4% | 0.4% | |||||||||
Accelerated technology depreciation | 0.2% | 0.2% | |||||||||
Expected adjusted EBIT margin | 3.6% | 4.0% | |||||||||
52 Weeks Ending February 1, 2025 |
|||||||||||
Low | High | ||||||||||
Expected diluted EPS | $1.40 | $1.70 | |||||||||
Supply chain asset impairment and other | 0.32 | 0.32 | |||||||||
Accelerated technology depreciation | 0.15 | 0.15 | |||||||||
Income tax impact on adjustments | (0.12) | (0.12) | |||||||||
Expected adjusted EPS | $1.75 | $2.05 | |||||||||
Four Quarters Ended | ||||||||
August 3, 2024 | July 29, 2023 | |||||||
Net earnings | $284 | $32 | ||||||
Income tax expense (benefit) | 100 | (22) | ||||||
Interest expense | 137 | 137 | ||||||
Earnings before interest and income tax expense | 521 | 147 | ||||||
Operating lease interest1 |
88 | 85 | ||||||
Non-operating related adjustments2 |
60 | 380 | ||||||
Adjusted net operating profit | 669 | 612 | ||||||
Adjusted estimated income tax expense3 |
(186) | (141) | ||||||
Adjusted net operating profit after tax | $483 | $471 | ||||||
Average total assets | $8,675 | $8,986 | ||||||
Average noncurrent deferred property incentives in excess of operating lease right-of-use (ROU) assets4 |
(137) | (177) | ||||||
Average non-interest bearing current liabilities | (2,949) | (3,149) | ||||||
Non-operating related adjustments2 |
143 | 184 | ||||||
Adjusted average invested capital | $5,732 | $5,844 | ||||||
Return on assets | 3.3 | % | 0.4 | % | ||||
Adjusted ROIC | 8.4 | % | 8.1 | % |
August 3, 2024 | |||||
Debt | $2,615 | ||||
Operating lease liabilities | 1,617 | ||||
Adjusted debt | $4,232 | ||||
Four Quarters Ended August 3, 2024 | |||||
Net earnings | $284 | ||||
Income tax expense | 100 | ||||
Interest expense, net | 103 | ||||
Earnings before interest and income taxes | 487 | ||||
Depreciation and amortization expenses | 604 | ||||
Operating lease cost1 |
286 | ||||
Amortization of developer reimbursements2 |
63 | ||||
Other Revolver covenant adjustments3 |
100 | ||||
Adjusted EBITDAR | $1,540 | ||||
Debt to Net Earnings | 9.2 | ||||
Adjusted debt to EBITDAR | 2.7 |
Six Months Ended | ||||||||
August 3, 2024 | July 29, 2023 | |||||||
Net cash provided by operating activities | $528 | $465 | ||||||
Capital expenditures | (204) | (225) | ||||||
Change in cash book overdrafts | 30 | 18 | ||||||
Free Cash Flow | $354 | $258 | ||||||
INVESTOR CONTACT: |
James Duies | |||||||
Nordstrom, Inc. | ||||||||
InvRelations@Nordstrom.com | ||||||||
MEDIA CONTACT: | Stephanie Corzett | |||||||
Nordstrom, Inc. | ||||||||
NordstromPR@Nordstrom.com |