Nordstrom (JWN) Q3 2025 earnings summary

Executive summary

• Net sales grew 4.6% year-over-year in Q3 2024 to $3.35 billion, with both banners delivering 4% comparable sales growth and digital sales up 6.4%, representing 34% of total sales.

• Nordstrom Rack led with 10.6% net sales growth and 12 new store openings in Q3, contributing to double-digit topline growth and customer acquisition.

• Net earnings for Q3 2024 were $46 million ($0.27 per diluted share), with adjusted EPS of $0.33, up from $0.25 last year, excluding non-recurring items.

• Customer count and purchase trips increased, especially among higher-income cohorts.

• Women's apparel and active categories saw double-digit growth; shoes, men's apparel, and kids grew mid to high single digits.

Financial highlights

• Gross profit margin improved to 35.6%, up 60 basis points year-over-year, driven by strong regular price sales.

• SG&A expenses were 36.6% of net sales, up 25 basis points, mainly due to higher labor costs and a $14 million technology depreciation charge; adjusted SG&A was 36.2%.

• Adjusted EBIT margin was 2.9%, up 45 basis points year-over-year; EBIT dollars up over 25% year-over-year.

• Ending inventory rose 5.9% year-over-year, mainly to support new Rack stores and cold weather categories.

• Free cash flow for the nine months ended November 2, 2024, was $78 million.

Outlook and guidance

• Fiscal 2024 revenue expected to be flat to up 1% versus 2023, including a 135 basis point headwind from the 53rd week.

• Comparable sales growth forecasted at 1%-2%; EBIT margin projected at 3.0%-3.4%, adjusted EBIT margin at 3.6%-4.0%.

• Adjusted EPS expected in the range of $1.75-$2.05; income tax rate anticipated at approximately 27%.

• Guidance reflects caution due to late October sales softness and a shorter holiday season.

• Approximately 30% of annual net sales and 40% of EBIT anticipated in Q4.