Nordstrom, Inc., a renowned department store chain headquartered in Seattle, wrapped up 2018 with a mixed bag of results, as unveiled in their latest report on Thursday. While the fourth quarter saw profits surpassing expectations, sales fell short of projections set by Wall Street analysts. Despite a 4.7% decline in net sales, which totaled $4.5 billion, Nordstrom managed to achieve a modest 0.1% increase in comparable sales for the quarter. The company’s quarterly net earnings soared to $248 million, equivalent to $1.48 per diluted share, surpassing the predicted $1.42 per share.
For the entire fiscal year of 2018, Nordstrom witnessed a 2.3% growth in net sales and a 1.7% increase in comparable sales, resulting in total revenues of $15.9 billion. The retailer made significant progress in various strategic initiatives, such as enhancing its digital platform, implementing integrated cross-channel strategies, and expanding its physical store footprint. Digital sales experienced a remarkable 16% surge, constituting 30% of total sales, with 10 million customers engaging in cross-channel shopping – marking a 6% rise from the previous year.
Moreover, Nordstrom expanded its presence to 379 locations in the US and Canada, including the introduction of six new Nordstrom Rack stores in Canada and the launch of its first men’s flagship store in New York. The company has plans to open two new full-line stores and five Nordstrom Rack locations in 2019, including the much-anticipated flagship store in New York at 225 West 57th Street. With a sprawling 320,000-square-foot space spread across seven floors at the base of Central Park Tower, this store represents the largest single-project investment in Nordstrom’s history.
Looking forward to fiscal year 2019, Nordstrom anticipates a 1-2% growth in net sales, with earnings per diluted share projected to range from $3.65 to $3.90. In the midst of a dynamic retail landscape and evolving consumer preferences, Nordstrom remains upbeat and committed to providing exceptional shopping experiences to sustain its growth momentum in the upcoming year.
For further information on Nordstrom’s latest financial performance and strategic initiatives, visit their official website here or refer to their investor relations page here.
