The company’s selling, general, and administrative (SG&A) expenses increased to $5.13 billion. However, Canada wind-down costs, which impacted the prior fiscal at $284 million, were absent in 2025, contributing to improved profitability. As a result, earnings before interest and income taxes (EBIT) more than doubled to $495 million, Nordstrom said in a press release.
Nordstrom Inc has reported revenues of $15.02 billion in FY24, with net sales at $14.56 billion and earnings surging to $294 million.
EBIT more than doubled to $495 million, driven by cost savings from the Canada wind-down.
Digital sales made up 36 per cent of total sales.
In Q4, net sales fell 2.1 per cent, while comparable sales rose 4.7 per cent.
CFO Cathy Smith announced her departure from the firm.
Digital sales represented 36 per cent of sales for the full fiscal. The company’s gross merchandise value (GMV) increased 3.1 per cent YoY. Earnings per share (EPS) increased accordingly, with basic EPS at $1.79 and diluted EPS at $1.74.
Excluding charges related primarily to a supply chain asset impairment in the second quarter, accelerated technology depreciation in the third and fourth quarters, and privatisation fees in the fourth quarter, adjusted EBIT was $593 million, or 4.1 per cent of sales, and adjusted EPS was $2.17.
“Our team reacted with agility and speed to the holiday environment, responding in real-time to better serve our customers and drive strong financial results,” said Pete Nordstrom, president of Nordstrom, Inc. “We consistently executed on our priorities in 2024, and we are grateful to our teams for their hard work to deliver on our purpose of helping customers feel good and look their best.”
Fourth quarter (Q4) performance
In Q4 FY24, Nordstrom’s net sales decreased 2.1 per cent and comparable sales increased 4.7 per cent year-over-year (YoY). Q4 net earnings were $165 million, or $0.97 per diluted share (EPS), and earnings before interest and taxes (EBIT) of $242 million. The company reported adjusted EBIT of $273 million and adjusted EPS of $1.10. Women’s apparel, active and men’s apparel had the strongest growth in Q4 versus the same quarter last fiscal.
The net earnings were $294 million, and EPS was $1.74, with EBIT of $495 million, or 3.4 per cent of sales in FY24. The company’s GMV decreased 0.2 per cent.
Brand-wise, Nordstrom banner net sales decreased 3.7 per cent and GMV decreased 1.0 per cent compared with the fourth quarter of 2023. Net sales for Nordstrom Rack increased 1.2 per cent.
Digital sales in Q4 decreased 1.8 per cent or increased 2.6 per cent excluding the 53rd week, compared with the same period in FY23. Digital sales represented 38 per cent of total sales during the quarter. The quarter’s GMV decreased 0.2 per cent YoY.
Gross profit, as a percentage of net sales, of 37.3 per cent increased 290 basis points (bps) in Q4 compared with the same period in FY23 primarily due to merchandise margin expansion related to timing of markdown recognition under the cost method of accounting, improved shrink and lower loyalty promotions.
“Customers responded positively to the strength of our offering across both banners in the fourth quarter,” said Erik Nordstrom, chief executive officer of Nordstrom, Inc. “We maintained the momentum we built throughout the year, which resulted in full-year sales and profitability coming in at the high end of our expectations.”
The company also announced that Cathy Smith will be stepping down from her role as chief financial officer (CFO). The company has initiated a comprehensive search for a new CFO with the assistance of a leading search firm.
“We are grateful for Cathy’s leadership over the past two years, which has been instrumental in strengthening our financial resilience and flexibility while maintaining our focus on providing customers with the best possible experiences. We wish her well in this next chapter. We are fortunate to have a strong financial leadership team to take on additional responsibilities and help ensure a smooth transition during our search,” added Erik Nordstrom.
Fibre2Fashion News Desk (SG)