The luxury department store posted impressive results but investors were still not happy with the report, so why are Nordstrom shares down?
Aug. 25, 2021
Despite posting strong results for the second quarter, Nordstrom (NYSE: JWN) shares dipped today following its earnings release last night. The earnings beat was overshadowed by concerns that the company has still not returned to pre-pandemic sales levels.
From one perspective, in-person shopping is still not as popular as rising Delta cases have put shoppers off going into malls and department stores. From another point of view, some shareholders expect the company to have overcome this problem by now seeing as we are over a year into the pandemic and its e-commerce division is performing well.
Whatever stance you take, it cannot be denied that Nordstrom posted some pretty impressive figures on Tuesday evening.
So how did Nordstrom earnings do in the second quarter?
For the second quarter, Nordstrom posted:
- Earnings of $0.49 per share,
- Revenue of $3.6 billion, which more than doubled year-over-year (YoY), but were compared unfavorably to 2019. On a two-year basis (pre-pandemic), its sales were actually down 6%,
- Net income of $80 million compared with a loss of $255 million a year earlier.
A key driver for Nordstrom in Q2 was its anniversary sale event. Total sales from the period were up 1% compared with 2019, showing that it is making slight progress. President Pete Nordstrom spoke about the event, stating:
“A compelling merchandise assortment, combined with new and differentiated services and experiences, contributed to strengthening customer engagement and improving financial results during our Anniversary Sale.”