Nordstrom shares climb 5% as earnings top estimates, but retailer issues cautious guidance

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Nordstrom Inc,Breaking News: Business,Breaking News: Earnings

Nordstrom has been working to cut costs and improve operations as it contends with softening demand for luxury goods.

Nordstrom handily beat Wall Street's earnings estimates as its efforts to cut costs and boost efficienies begin to bear fruit.

Nordstrom now expects adjusted earnings per share to be between $1.75 and $2.05, compared to a previous range of $1.65 to $2.05. It anticipates sales will be in a range of a 1% decline to 1% growth from the prior year, compared to previous guidance of down 2% to up 1%. Sales rose to $3.89 billion, up about 3.4% from $3.77 billion a year earlier. Revenue came in just shy of analysts' expectations.

During the quarter, Nordstrom's profits fell compared to the same period a year ago, but earnings grew over the last six months. Last year, Nordstrom reported a net loss of $67 million in the six months ended July 29, 2023, but in the same period this year, it posted a profit of $83 million.

 

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