• Strong sales growth at both banners during first quarter
• Nordstrom Rack net sales up double-digits, with comparable sales up 8 percent
• Gross profit constrained due to timing and other factors
• Reaffirms fiscal 2024 outlook

SEATTLE, May 30, 2024 /PRNewswire/ -- Nordstrom, Inc. (NYSE: JWN) today reported a first quarter net loss of $39 million, or loss per share of $0.24, and loss before interest and taxes of $21 million.

For the first quarter ended May 4, 2024, net sales increased 5.1 percent versus the same period in fiscal 2023, and total Company comparable sales increased 3.8 percent. Gross merchandise value ("GMV") increased 4.9 percent. First quarter net sales include a 75 basis point negative impact from the wind-down of Canadian operations. During the quarter, Nordstrom banner net sales increased 0.6 percent and comparable sales increased 1.8 percent. Net sales for Nordstrom Rack increased 13.8 percent and comparable sales increased 7.9 percent.

"The positive sales growth we saw across the company in the first quarter is very encouraging, and we're particularly excited about the progress that our Rack banner is making," said Erik Nordstrom, chief executive officer of Nordstrom, Inc. "While we're pleased with our topline growth, profitability fell short of our expectations. Looking ahead, our strong sales performance gives us momentum heading into the rest of the year and the confidence to reaffirm our 2024 guidance."

In the first quarter, active, kids' apparel and women's apparel had strong double-digit growth versus 2023, and beauty increased by high single-digits.

"We're set up well going forward in regards to the health of our inventory, both in managing levels and providing compelling content with good sell-through," said Pete Nordstrom, president of Nordstrom, Inc. "As we reflect on the legacy that our dad left behind, we've been reminded of his firmly held and consistent values—especially his commitment to serving our customers. Those values have been integral to Nordstrom's growth, and they remain at the core of the decisions we make as a company. We want to thank our teams for bringing our values to life as we stay focused on our priorities for 2024."

As previously announced, on May 22, 2024, the board of directors declared a quarterly cash dividend of $0.19 per share, payable on June 19, 2024, to shareholders of record at the close of business on June 4, 2024.

FIRST QUARTER 2024 SUMMARY

• Total Company net sales increased 5.1 percent and comparable sales increased 3.8 percent compared with the same period in fiscal 2023. GMV increased 4.9 percent. The wind-down of Canadian operations had a negative impact on total Company net sales of 75 basis points, as the first quarter of 2023 included one month of Canadian sales.
• Nordstrom banner net sales increased 0.6 percent and comparable sales increased 1.8 percent compared with the same period in fiscal 2023. GMV increased 0.3 percent. The wind-down of Canadian operations had a negative impact on Nordstrom banner net sales of 110 basis points.
• Nordstrom Rack banner net sales increased 13.8 percent and comparable sales increased 7.9 percent compared with the same period in fiscal 2023.
• Digital sales decreased 0.2 percent compared with the same period in fiscal 2023. Digital sales represented 34 percent of total sales during the quarter.
• Gross profit, as a percentage of net sales, of 31.6 percent decreased 225 basis points compared with the same period in fiscal 2023. The strength in first quarter sales drove strong gross profit and leverage, which were more than offset primarily by timing matters related to both higher loyalty activity and reserves, as well as external theft in the Company's transportation network and inventory cleanup in the Company's supply chain as facilities are consolidated.
• Ending inventory decreased 6.3 percent compared with the same period in fiscal 2023, versus a 5.1 percent increase in sales.
• Selling, general and administrative expenses, as a percentage of net sales, of 35.8 percent decreased 20 basis points compared with the same period in fiscal 2023, primarily due to leverage on higher sales and improvements in variable costs in supply chain and across the business, partially offset by higher labor costs.
• Loss before interest and taxes was $21 million in the first quarter of 2024, compared with loss before interest and taxes of $259 million during the same period in fiscal 2023. Adjusted earnings before interest and taxes ("EBIT") of $50 million in the first quarter of 2023 excluded one-time charges of $309 million related to the wind-down of Canadian operations.¹
• Interest expense, net, of $27 million decreased from $28 million during the same period in fiscal 2023.
• Income tax benefit was $9 million, or 17.5 percent of pretax loss, compared with income tax benefit of $82 million, or 28.6 percent of pretax loss, in the same period in fiscal 2023. The effective tax rate decreased in the first quarter of 2024, compared with the same period in fiscal 2023, primarily due to nonrecurring tax benefits related to the wind-down of Canadian operations in 2023. Excluding the impacts of the Canada wind-down, the rate decrease was due to the impact of unfavorable stock-based compensation on pretax loss in 2024, compared with pretax earnings in 2023.
• The Company ended the first quarter with $1.2 billion in available liquidity, including $428 million in cash. The Company strengthened its financial position in April by retiring the $250 million notes that were due using cash on hand.

STORES UPDATE

During and subsequent to the first quarter of 2024, the Company opened nine stores:

The Company has also announced plans to open the following stores:

The Company had the following store counts as of quarter-end:

FISCAL YEAR 2024 OUTLOOK

The Company reaffirmed its financial outlook for fiscal 2024:

• Revenue range, including retail sales and credit card revenues, of 2.0 percent decline to 1.0 percent growth versus the 53-week fiscal 2023, which includes an approximately 135 basis point unfavorable impact from the 53rd week
• Comparable sales range of 1.0 percent decline to 2.0 percent growth versus 52 weeks in fiscal 2023
• EBIT margin of 3.5 to 4.0 percent of sales
• Income tax rate of approximately 27 percent
• Earnings per share ("EPS") of $1.65 to $2.05, excluding the impact of share repurchase activity, if any

CONFERENCE CALL INFORMATION

The Company's senior management will host a conference call to provide a business update and to discuss first quarter 2024 financial results and fiscal 2024 outlook at 4:45 p.m. EDT today. To listen to the live call online and view the speakers' prepared remarks and the conference call slides, visit the Investor Relations section of the Company's corporate website at investor.nordstrom.com. An archived webcast with the speakers' prepared remarks and the conference call slides will be available in the Quarterly Results section for one year. Interested parties may also dial 201-689-8354. A telephone replay will be available beginning approximately three hours after the conclusion of the call by dialing 877-660-6853 or 201-612-7415 and entering Conference ID 13746681, until the close of business on June 6, 2024.

ABOUT NORDSTROM

At Nordstrom, Inc. (NYSE: JWN), we exist to help our customers feel good and look their best. Since starting as a shoe store in 1901, how to best serve customers has been at the center of every decision we make. This heritage of service is the foundation we're building on as we provide convenience and true connection for our customers. Our interconnected model enables us to serve customers when, where and how they want to shop – whether that's in-store at more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations or digitally through our Nordstrom and Rack apps and websites. Through it all, we remain committed to leaving the world better than we found it.

Certain statements in this press release contain or may suggest "forward-looking" information (as defined in the Private Securities Litigation Reform Act of 1995) that involves risks and uncertainties that could cause results to be materially different from expectations. The words "will," "may," "designed to," "outlook," "believes," "should," "targets," "anticipates," "assumptions," "plans," "expects" or "expectations," "intends," "estimates," "forecasts," "guidance" and similar expressions identify certain of these forward-looking statements. The Company also may provide forward-looking statements in oral statements or other written materials released to the public. All statements contained or incorporated in this press release or in any other public statements that address such future events or expectations are forward-looking statements. Important factors that could cause actual results to differ materially from these forward-looking statements are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2024, and our Form 10-Q for the fiscal quarter ended May 4, 2024, to be filed with the SEC on or about June 7, 2024. In addition, forward-looking statements contained in this release may be impacted by the actual outcome of events or occurrences related to the wind-down of business operations in Canada as well as the effect of the Company's announcement of the exploration of possible avenues to enhance shareholder value and the formation of a special committee of the board of directors to consider any proposal which might be brought forward by members of the Nordstrom family to take the Company private. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances. In addition, the actual timing, price, manner and amounts of future share repurchases, if any, will be subject to the discretion of our board of directors, contractual commitments, market and economic conditions and applicable Securities and Exchange Commission rules. This earnings release includes references to websites, website addresses and additional materials, including reports and blogs, found on those websites. The content of any websites and materials named, hyperlinked or otherwise referenced in this earnings release are not incorporated by reference into this earnings release or in any other report or document we file with the SEC, and any references to such websites and materials are intended to be inactive textual references only. The information on those websites is not part of this earnings release.

NORDSTROM, INC. CONSOLIDATED BALANCE SHEETS (unaudited; amounts in millions)
	May 4, 2024		February 3, 2024		April 29, 2023
Assets
Current assets:
Cash and cash equivalents	$428		$628		$581
Accounts receivable, net	361		334		279
Merchandise inventories	2,095		1,888		2,237
Prepaid expenses and other current assets	334		286		414
Total current assets	3,218		3,136		3,511
Land, property and equipment (net of accumulated depreciation of $8,391, $8,251 and $8,133)	3,130		3,177		3,197
Operating lease right-of-use assets	1,373		1,359		1,393
Goodwill	249		249		249
Other assets	506		523		478
Total assets	$8,476		$8,444		$8,828
Liabilities and Shareholders' Equity
Current liabilities:
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