Nordstrom (JWN) Profits Q2 2021

Nordstrom shares fell on Tuesday after the department store chain announced second-quarter sales remained below pre-pandemic levels.

Compared to the previous year, sales more than doubled as shoppers used the Nordstrom anniversary sale as a reason to return to the mall and splurge on new shoes, dresses and athletic wear. But over two years, turnover is down 6%.

Nordstrom felt more optimistic for the rest of the year and raised its outlook, following rivals Macy’s and Kohl’s who have done the same in recent days.

But its shares fell more than 6% in the extended trading.

Here’s how Nordstrom fared for the quarter ended July 31 compared to what Wall Street expected, based on an analyst survey by Refinitiv:

• Earnings per share: 49 cents vs. 27 cents expected
• Turnover: $ 3.66 billion against $ 3.36 billion expected

Nordstrom reported net income of $ 80 million, or 49 cents per share, compared with a loss of $ 255 million, or $ 1.62 per share, a year earlier. Analysts were expecting a profit of 27 cents per share.

Revenue reached $ 3.66 billion from $ 1.86 billion a year earlier, beating estimates of $ 3.36 billion.

Total sales from Nordstrom’s anniversary sale were up 1% from 2019, the company said. Last year’s event was postponed to the third quarter due to the circumstances of the Covid pandemic.

“An attractive merchandise assortment, combined with new and differentiated services and experiences, helped strengthen customer engagement and improve bottom lines at our anniversary sale,” President Pete Nordstrom said in a statement from hurry.

At Nordstrom’s eponymous department store brand, revenue was up 127% year-over-year, but down 5% over two years.

At Nordstrom Rack, an non-price division that rivals TJ Maxx and Macy’s Backstage, sales are up 61% from 2020, but are down 8% from 2019.

The company said its online sales were up 30% from the previous year, accounting for 40% of Nordstrom’s total business.

Nordstrom now expects its annual revenue to grow by more than 35%, against a previous forecast calling for growth of 25%. Analysts were looking for a 30% increase, according to Refinitiv.

As the marker closed on Tuesday, shares of Nordstrom were up 21% year-to-date, taking the retailer’s market cap to $ 6 billion.

Find the full press release on Nordstrom’s results here.