On November 26, U.S. retail giant Nordstrom announced its Q3 2024 financial results, reporting a 4.6% year-over-year increase in net sales and a 4.0% increase in company-wide comparable sales.
The company achieved a net income of $46 million, with earnings per share (EPS) of $0.27, and adjusted EPS of $0.33. Additionally, its earnings before interest and taxes (EBIT) reached $83 million, with adjusted EBIT at $97 million, reflecting strong profitability.
Sales Growth Drives Profitability
Leading Nordstrom’s growth is its discount division, Nordstrom Rack, which reported a 10.6% increase in net sales and a 3.9% increase in comparable sales year-over-year, showcasing robust performance. The core Nordstrom brand also maintained steady growth, with net sales increasing by 1.3% and comparable sales rising by 4.0%.
Looking at product categories, women’s apparel and activewear stood out with double-digit growth, while shoes, men’s apparel, and kids’ categories recorded solid mid-to-high single-digit growth. These categories have seen accelerated momentum compared to the previous quarter, signaling increasing customer support and demand.
Moreover, Nordstrom’s digital sales demonstrated remarkable progress, growing by 6.4% year-over-year and accounting for 34% of total sales. The seamless integration of online and in-store shopping experiences continues to enhance customer satisfaction.
Balancing Profitability and Inventory Management
The gross profit margin for Q3 improved to 35.6%, a 60-basis-point increase from 35.0% in the same quarter last year, driven by higher sales at regular prices. However, selling, general, and administrative expenses (SG&A) rose slightly to 36.6% of net sales, up from 36.3% the previous year, due to increased labor costs and accelerated technology depreciation.
While inventory levels at the end of the quarter were 5.9% higher than the previous year, Nordstrom maintained efficient inventory management, adapting flexibly to increased demand. By avoiding overstock while meeting customer needs, the company’s approach underpins both profitability and sustainable growth.
Expanding Store Footprint and Strategic Growth
In 2024, Nordstrom further strengthened its presence by opening 23 new stores nationwide. Among these, Nordstrom Rack led the way, with notable expansions in high-growth markets such as California and Florida.
Looking ahead, the company plans to open 16 additional stores between the spring and fall of 2025, continuing its proactive expansion. These developments aim to enhance the customer experience while integrating in-store and digital sales to capture greater market share in key regions.
Optimism for the Holiday Season and Future Outlook
With the holiday season approaching, Nordstrom is aiming for further success. The company forecasts year-over-year sales growth of 0–1% (adjusted for a 53-week comparison), an adjusted operating profit margin of 3.6–4.0%, and adjusted EPS of $1.75–$2.05.
Erik Nordstrom, CEO of Nordstrom, Inc., stated, “Looking ahead, we’ll continue to improve our shopping experience as we strive to maintain the positive momentum we’ve worked towards all year.”
Pete Nordstrom, president of Nordstrom, Inc., added, “Our actions throughout this year have led to this moment, and we feel well-positioned for a successful holiday season and look forward to helping our customers celebrate the moments that matter.”
Nordstrom remains committed to sustainable growth and profitability, focusing on flexible strategies and customer-centric services that meet evolving market demands. The company’s forward-looking approach positions it as a leader in the retail industry.