Nordstrom shares fell 7% on Tuesday after its Q1 2021 loss per share of $1.05 disappointed investors’ bet of $0.57 per share loss. First quarter revenue was $3.01 billion, beating expected $2.90 billion, and above $2.12 billion a year ago.
Nordstrom’s sales jump in quarter revenue was fueled by an uptick in physical store shopping.
Nordstrom maintained its FY21 outlook as other retailers boosted forecasts weighing down on stock.
The company sees elevated shipping and labor costs, as well as supply challenges, which constrain the apparel industry.
Nordstrom cut its loss from $521 million in Q1 2020 to $166 million in Q1 2021.
The retailer added 20% more items to its stores as it remains keen to expand its active, kids, and home categories.
Digital sales were up 23% from 2020 and 28% higher than the same period in 2019.
CEO Erik Nordstrom sees ongoing strengths across all stores, including the cost-conscious Nordstrom Rack business which boosted sales.
Nordstrom aims to unlock “pent-up demand” in the summer months.
The retailer retained its projected revenue growth of more than 25% this year and expects digital to account for half of its business by the end of the year.
Nordstrom stock is currently gaining. JWN: NYSE is down 8.19%
