Nordstrom Reports Strong Q3 Sales Growth but Faces Profit Decline

The retailer exceeded revenue expectations with a 4.6% sales increase, but higher costs and slowing late-quarter demand weighed on net earnings.

Nordstrom's Q3 2024 revenue rose 4.6% year-over-year to $3.46 billion, surpassing analyst expectations of $3.35 billion.
Net earnings dropped to $46 million from $67 million a year ago, attributed to increased labor and technology expenses.
Comparable sales grew 4% across both Nordstrom and Nordstrom Rack, with digital sales increasing by 6.4% and accounting for 34% of total sales.
The company raised the lower end of its full-year revenue forecast to flat-to-1% growth but maintained its earnings guidance due to a slowdown in late October sales.
Nordstrom continues to invest in its off-price Rack stores and digital platforms, opening 23 new Rack locations this year and enhancing online shopping experiences.