Kohl's Q3 Earnings Exceed Expectations, Nordstrom's Fall Short Amid Challenging Retail Landscape

Kohl's partnership with Sephora drives sales, while Nordstrom navigates sales decline with improved execution and inventory management.

Kohl's Q3 earnings exceeded expectations with a reported diluted earnings of $0.53 a share, compared to last year's $0.82 and street expectations of $0.35. Net sales were $3,843 thousand compared to last year’s $4,052 thousand.
Kohl's partnership with Sephora has been a driving force behind a 70% increase in beauty sales in the quarter. Sephora now has 900 units in operation and is expected to achieve $2 billion in sales by 2025.
Nordstrom's Q3 results fell short of expectations with a nearly 7% year-over-year sales decline. The company maintained its full-year sales outlook, expecting a revenue decline of between 4% and 6%.
Despite the sales decline, Nordstrom's net income rose to $67 million, compared to a loss of $20 million in the previous year. The company's efforts to trim stocks and improve execution have resulted in a positive financial outcome.
Both Kohl's and Nordstrom are navigating a challenging retail landscape, with consumers cutting back on non-essential spending due to inflation, high interest rates, and the resumption of student loan repayments.