Nordstrom (JWN) Q3 Earnings call transcript Nov 26, 2025
1min read In the third quarter of 2024, Nordstrom demonstrated robust growth across all key performance indicators, driven by a strategic focus on enhancing the customer experience and operational optimization. During their earnings call, company executives discussed the company's financial results, growth initiatives, and strategic priorities, providing valuable insights into the health and future prospects of the business.
Financial Highlights
Nordstrom's third quarter performance was marked by solid growth in net sales, which reached over $3.3 billion, and earnings per share of $0.33. Both Nordstrom and Nordstrom Rack achieved 4% comparable sales growth, with digital sales growth of over 6%. The company's strategic focus on a curated selection of brands across its fleet, operational optimization, and the expansion of its Rack business contributed to these impressive results.
Growth and Strategic Priorities
The company's priorities for 2024 include driving Nordstrom banner growth, operational optimization, and building on the momentum of the Rack. Nordstrom is focusing on enhancing the customer experience by providing a more curated selection of brands, both online and in-store, and optimizing its operational processes to better serve customers. The company's efforts to improve the speed and efficiency of its supply chain have resulted in faster fulfillment and delivery of items, leading to a 40% improvement in the speed of customer returns.
Nordstrom Rack, the company's off-price subsidiary, continues to be a significant growth driver, with net sales growth of 10.6% and comparable sales growth of 3.9%. The company's expansion of new Rack stores and investments in digital services, such as buy online and pick up in stores and store fulfillment for Rack digital orders, are contributing to the Rack's success.
Investor and Analyst Questions
During the Q&A session, key analysts raised questions about the health of the Nordstrom consumer, the drivers of the sales slowdown in late October, and the company's outlook for the holiday season. Nordstrom executives provided reassuring responses, attributing the sales slowdown to external factors, such as the election and weather, and expressing confidence in the company's inventory position and holiday plans.
Market Positioning and Outlook
Nordstrom's earnings call underscored the company's strategic focus on enhancing the customer experience, operational optimization, and the expansion of its Rack business. These initiatives, coupled with the company's strong financial performance and strategic priorities, position Nordstrom well for continued growth and success in the retail landscape.
Looking ahead, Nordstrom is well-positioned to navigate the challenges and opportunities of the retail industry, with a strong focus on delivering value to its customers and shareholders. The company's commitment to innovation, operational excellence, and strategic growth initiatives will be key factors in its future success.
