Nordstrom reported better-than-expected first-quarter sales on Tuesday as shoppers returned to stores to purchase new shoes, sunglasses and swimwear for social outings.
But the stock fell about 7% in extended trading as the retailer posted an unexpectedly large loss and held its full year outlook despite other retailers raising their outlook in the past few days.
Nordstrom reported a loss of $ 166 million, or $ 1.05 per share, for the period, compared to a loss of $ 521 million or $ 3.33 per share the previous year. That was more than the 57 cents per share loss analysts had expected based on refinitive data.
The company had total sales of $ 3.01 billion, compared to $ 2.12 billion a year ago. That exceeded expectations for $ 2.90 billion.
Net sales, which exclude credit card revenue, increased 44% from the same period last year, when Nordstrom’s stores were closed about half the quarter due to restrictions imposed during the Covid pandemic. However, net sales decreased by 13% compared to the same period last year.
The company’s annual anniversary sale is slated for the second quarter of this year, he added, which should aim to get more Americans to return to pre-pandemic activities and freshen up their wardrobes.
Nevertheless, the department store chain confirmed its outlook for fiscal year 2021, which envisages sales growth of more than 25%. The company also assumes that by the end of the year half of its business will be driven by digitization.
Retailers Macy’s and Kohl’s both recently released their first quarter results, which beat Street’s estimates and raised their respective outlooks for 2021.
“Although there is still significant uncertainty about Covid-19, we remain confident that we can meet our targets for 2021 and achieve profitable sales growth when demand recovers,” said Nordstrom CFO Anne Bramman in prepared notes.