Nordstrom, Inc. (NYSE:JWN) reported weaker-than-expected results for its fourth quarter on Tuesday.
Net sales growth of 1.3% improved by more than 400 basis points from year-to-date trends, with growth in Nordstrom’s Full-Price and Off-Price businesses.
Earnings per diluted share for the quarter ended February 1, 2020, of $1.23 included charges of $0.19, which were not reflected in the Company’s prior outlook. These charges primarily related to the integration of Trunk Club as part of Nordstrom’s market strategy in addition to debt refinancing costs.
For fiscal 2019, earnings per diluted share were $3.18. Excluding charges of $0.19, earnings per diluted share were in-line with the Company’s prior outlook of $3.30 to $3.50. Net sales decreased 2.2% compared with fiscal 2018, in-line with expectations.
Said CEO Erik Nordstrom, "Through our customer focus, inventory efficiencies and expense discipline, we drove improvement in sales trends in Full-Price and Off-Price, and we increased profitability during the second half of the year.
"Our 2019 results reflected the accelerated roll out of our market strategy, our strength of Nordstrom Rack’s execution, improved merchandise margins and realized expense savings that were 10% above our plan."
JWN also announced today it will transition from its co-President structure to a sole Chief Executive Officer, with Erik Nordstrom to serve in this role. Pete Nordstrom has been named as the Company’s President of Nordstrom Inc. and Chief Brand Officer.
The new titles reflect their current and ongoing responsibilities. Both Erik and Pete Nordstrom will remain on the Company’s Board of Directors.
Nordstrom shares gave back 82 cents, or 2.5%, to $32.62
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