Nordstrom Raises FY24 Revenue Outlook Amid Strong Holiday Season

Nordstrom, Inc. JWN, the Seattle-based fashion retailer, has announced an upward revision to its revenue expectations for fiscal 2024, showcasing positive momentum, robust demand and comparable growth.Nordstrom has raised its full-year sales outlook following stronger-than-anticipated holiday shopping performance across its stores and online platforms. The robust holiday results exceeded the company's cautious expectations, driven by increased consumer engagement and successful sales strategies during the critical holiday season.JWN’s Upgraded Outlook for FY24Nordstrom reported a total company net sales increase of 4.9% and a comparable sales increase of 5.8% for the nine-week holiday period ending Jan. 4, 2025, compared with the nine weeks ended Dec. 30, 2023. For the Nordstrom banner, net sales grew 3.7%, while comparable sales rose 6.5%, driven by strong customer demand. The Nordstrom Rack banner showed even stronger performance, with a 7.4% increase in net sales and 4.3% growth in comparable sales, highlighting solid results in the off-price segment.In late November, Nordstrom had projected a conservative full-year revenue outlook, ranging from flat to up 1%, with adjusted earnings between $1.75 and $2.05 per share, citing a noticeable decline in sales trends in late October. However, CEO Erik Nordstrom attributed the stronger-than-expected holiday sales to the company's competitive promotional strategies and the strength of its offerings, which outperformed prior expectations.Building on this strong performance, Nordstrom has raised its revenue guidance for fiscal 2024. For the fiscal year, JWN anticipates revenue growth, including retail sales and credit card revenues, of 1.5% to 2.5% compared with the fiscal 2023, which included 53 weeks, with an approximately 135 basis point unfavorable impact due to the absence of the 53rd week.For fiscal 2024, the company expects comparable sales growth of 2.5-3.5% versus the 52 weeks in fiscal 2023, compared with its prior outlook of 1% to 2% growth.More on JWN StockAs Nordstrom prepares for privatization, the founding family has reached a deal to buy the retailer. In late December, the company announced a $6.25 billion buyout in partnership with El Puerto de Liverpool, a Mexican department store chain. The transaction was approved by the board of directors and is expected to close in the first half of 2025.Nordstrom has been making strides with its customer-centric strategy. The company is focused on driving growth at the Nordstrom banner while optimizing operations and strengthening its Rack off-price stores. Efforts include expediting deliveries, expanding online offerings and adding affordable merchandise to Rack stores.Nordstrom’s performance is bolstered by an increased focus on its distribution facilities and the improved integration of physical and digital capabilities. The company is also working to enhance inventory management and increase efficiency and productivity in its operations.Looking ahead, Nordstrom remains committed to its long-term strategy, which leverages its digital-first platform to better serve customers, capture market share and drive profitable growth.Nordstrom stock, which currently carries a Zacks Rank #2 (Buy), has risen 37% in the past year compared with the industry’s growth of 42.4%. Image Source: Zacks Investment Research Other Stocks to ConsiderWe have highlighted three other top-ranked stocks in the broader sector, namely Deckers DECK, The Gap, Inc. GAP and Abercrombie & Fitch Co. ANF.Deckers, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). DECK delivered an average earnings surprise of 41.1% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 13.6% and 13.8%, respectively, from the year-ago reported figures.Gap, which operates as an apparel retail company that offers apparel, accessories and personal care products for men, women and children, presently flaunts a Zacks Rank #1.The Zacks Consensus Estimate for The Gap’s current fiscal-year sales and earnings indicates growth of 0.8% and 41.3%, respectively, from the year-ago quarter’s reported numbers. GAP has a trailing four-quarter average earnings surprise of 101.2%.Abercrombie, a leading casual apparel retailer, currently carries a Zacks Rank of 2. Abercrombie has a trailing four-quarter earnings surprise of 14.8%, on average.The Zacks Consensus Estimate for ANF’s current financial-year sales and earnings indicates growth of 15.0% and 69.3%, respectively, from the year-ago reported figures.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Deckers Outdoor Corporation (DECK): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report The Gap, Inc. 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