Net sales increased 3.4% to $3.89bn and comparable sales increased 1.9%, compared with the same period in fiscal 2023. The results were better than department store peers including Macy’s and Dillard’s, which earlier this month reported negative sales in Q2 impacted by consumers holding back on spending and feeling pinched by inflation. Based on its Q2 results, Nordstrom raised slightly its comparable sales forecast for 2024 to flat to 2% ahead, from its previous projection of negative 1% to positive 2%. Best-performing categories were activewear, women’s apparel, beauty and kids across both the Nordstrom and Nordstrom Rack banners.The business was driven by improved merchandise flow; greater full-price selling; rolling out radio frequency identification, which provides faster inventory data; private brands gaining traction following a refresh unveiled earlier this year, and continued momentum at Rack, which is opening 23 stores this year.

Q2 net earnings came to $122mn. EBIT reached $190mn. Adjusted EBIT, which excludes a charge primarily related to supply chain asset impairment involving a decision to not open a new fulfillment center on the West Coast, reached $244mn last quarter, beating the year-ago EBIT of $192mn. Nordstrom banner net sales and comparable sales each increased 0.9% compared with the same period in fiscal 2023. Gross merchandise value increased 1.1%. The timing shift of the Anniversary Sale had a positive impact on Nordstrom banner net sales of about 200 basis points compared with the second quarter of 2023. Nordstrom Rack banner net sales increased 8.8% and comparable sales increased 4.1% compared with the year-ago period. Digital sales increased 6.2% compared with the same period in fiscal 2023. Digital sales represented 37% of total sales during the quarter. Gross profit, as a percentage of net sales, of 36.6% increased 155 basis points compared with the same period in fiscal 2023, primarily due to strong regular price sales and leverage on higher total sales. With its marketplace format launched last April, Nordstrom.com added 15,000 new items and 100 new brands, though Erik Nordstrom noted that marketplace is not yet a material driver. The Manhattan flagship is the top seller in the fleet and among the fastest growing. The Anniversary Sale met its plan, and is beneficial for getting an early read on how categories could perform for fall. There was a particularly good performance in outerwear and sweaters, as well as strength across all categories in private brands, particularly women’s private brand apparel.