How did Nordstrom's revenue and expenses trend in Q4 2025?

Nordstrom's Revenue and Expenses Trends in Q4 2025:

1. Revenue Trends:
   • Nordstrom reported a total revenue of $3.22 billion in Q4 2025.
   • The company's revenue was segmented as $2.04 billion from its Nordstrom banner and $1.18 billion from Nordstrom Rack.
   • Digital sales represented 38% of total sales.
2. Expense Trends:
   • The company's gross profit margin improved to 37.3% in Q4 2024, up by 290 basis points from the previous year, driven by enhanced merchandise management, reduced shrinkage, and more disciplined promotional strategies.
   • Operating expenses, represented as selling, general, and administrative costs, rose to 34.4% of net sales, an increase of 200 basis points due to elevated labor expenses, privatization fees, and accelerated charges for technology depreciation.
3. Financial Performance:
   • Nordstrom reported strong Q4 2024 results with net earnings of $165 million and EBIT of $242 million.
   • Adjusted EBIT was $273 million, and adjusted EPS reached $1.10 when excluding privatization fees and technology depreciation charges.
4. Comparative Analysis:
   • In Q4 2024, Nordstrom's comparable sales increased by 4.7% company-wide, with Nordstrom banner comparable sales up 5.3%, and Nordstrom Rack comparable sales rising 3.5%.
   • For the full year 2024, Nordstrom achieved net earnings of $294 million and EBIT of $495 million.
   • The company's digital sales fell 1.8% but showed a 2.6% increase when the impact of the 53rd week is excluded from the comparison with fiscal 2023.

The data indicates that Nordstrom experienced robust revenue growth driven by effective cost management and strategic digital sales initiatives, despite facing challenges in inventory and expense management.