The following is a summary of the Nordstrom, Inc. (JWN) Q2 2024 Earnings Call Transcript:
Financial Performance:
Nordstrom reported Q2 2024 net sales of $3.8 billion with earnings per share of $0.96.
Gross profit as a percentage of net sales expanded by 155 basis points to 36.6%, primarily due to strong regular price sales.
Total company net sales increased 3.4%, with comparable sales rising 1.9%. Nordstrom Rack net sales saw an increase of 8.8%. Ending inventory increased by 8.3% versus a year ago.
Business Progress:
Nordstrom continues to focus on driving growth in its Nordstrom banner and building momentum at Nordstrom Rack, opening five new Rack stores and planning for 12 more within the year.
The company has successfully launched a marketplace, adding over 15,000 items and nearly 100 new brands.
RFID technology has been implemented across locations to enhance real-time inventory data, improving product flow and customer experience.
Opportunities:
Expanded merchandise offerings online have driven sales growth while comprehensive brand offerings including Nordstrom private brands are resonating with customers, evidenced during the Anniversary Sale.
Nordstrom continues to invest in its digital capabilities and inventory optimization to capture greater market share.
Risks:
The potential impact of high inventory growth rates vs. sales demand, necessitating careful management.
Inventories increasing by 8.3% year-over-year, primarily supporting Rack momentum but needing careful balancing with sales demand.
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