In an environment still subject to pressures arising from the COVID-19 pandemic, Nordstrom returned third quarter earnings that beat a Wall Street estimate, with digital sales key to driving results.
For the period, Nordstrom recorded net earnings of $53 million, or 34 cents per diluted share, versus $126 million, or 81 cents per diluted share, in the year-prior quarter. Net income in the period included an income tax benefit of 12 cents per diluted share associated with the CARES Act, the company noted.
Nordstrom beat a Zacks Investment Research earnings per diluted share estimate, as adjusted for one-time events, by 21 cents.
Net sales were $3 billion while net revenues were $3.09 billion versus $3.57 billion and $3.67 billion, respectively, in the year-before quarter, the company stated. Sales for Nordstrom full-price stores were $2.12 billion compared with $2.27 billion in the year-earlier quarter while sales for its off-price stores were $882 million versus $1.3 billion in the year-past period. Digital sales for the third quarter were $1.6 billion, up 37% year over year and representing 54% of business done in the period, the company reported. With the effect of a shift in the Nordstrom Anniversary Sale event excluded, digital sales advanced in the mid-teens percent range during the quarter, consistent with trends in the first half of the year, the company added.
“Our ability to significantly strengthen our financial flexibility early in the pandemic was key to delivering operating profitability of more than $100 million and cash flow of more than $150 million in the third quarter,” said Erik Nordstrom, Nordstrom CEO, in announcing the financial results. “We also unlocked new ways to better serve customers on their terms with greater convenience and connection, including expansion of our online order pickup services to nearly 350 locations across both Nordstrom and Nordstrom Racks.”