Nordstrom in solid Q4 ahead of deal to go private; CFO departing for Starbucks
Nordstrom Inc. reported better-than-expected fourth-quarter earnings and revenue and said its deal to go private is on track to close in the first half of the year.
The upscale department store retailer also said that Cathy Smith will step down as CFO following the filing of its 2024 annual report, which is expected within a month. Smith is leaving Nordstrom to join Starbucks Corp. as its new finance chief, replacing company veteran Rachel Ruggeri. She is expected to start in the next month, per Starbucks CEO Brian Niccol's message to employees.
Nordstrom said it has started a search for a new CFO.
In December, Nordstrom signed an agreement under which the Nordstrom family and Mexican retail group El Puerto de Liverpool will acquire the company for $6.25 billion. Following the close of the transaction, Nordstrom will be owned 50.1% by the Nordstrom family and 49.9% by Liverpool. With the completion of the deal, Nordstrom's common stock will no longer be listed on any public market.
Fourth Quarter
Nordstrom’s net earnings totaled $165 million, or $0.97 per share, for the quarter ended, Feb. 1. Adjusted earnings per share were $1.10, ahead of analysts estimates of $0.93 per share.
Revenue rose to $4.32 billion from $4.29 topping estimates of $4.28 billion. Women’s apparel, active and men’s apparel saw the strongest growth in the quarter.
Same-store sales rose 4.7%. Nordstrom banner comp sales increased 5.3%. Nordstrom Rack comparable sales increased 3.5%.
"Customers responded positively to the strength of our offering across both banners in the fourth quarter," said CEO Erik Nordstrom. "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."
In comments, David SIlverman, senior director, Fitch Ratings, said that while Target’s fourth quarter report and 2025 guidance supports Fitch’s view that while 2025 will be a choppy year for U.S. discretionary retailers, "Target has the operating infrastructure and close customer connections to maneuver through a difficult environment better than many discretionary peers."
"Target’s comments on 2025 reinforce Fitch’s view that spending on discretionary goods will remain sluggish in the near term and that companies will need to focus on operating agility and conservatism to avoid meaningful income declines," he said.
Nordstrom ended the year with a total of 377 stores, including 277 Nordstrom Rack stores.
