Nordstrom stocks rose by 6% after trading closed on Thursday after the retailer’s quarterly earnings beat Wall Street expectations. The company’s strong financial performance came despite a rise in vanishing merchandise and theft, which is affecting U.S. retailers at large.
“Losses from theft are at historical highs,” Nordstrom CEO Erik Nordstrom observed. “And I’d say we find it unacceptable and needs to be addressed.” Shares retreated by 1% on Friday following Nordstrom’s comments.
Still, Nordstrom reported net sales of $3.66 billion, beating estimates of $3.61 billion. Adjusted earnings per share were $0.84, outpacing forecasts of $0.44. Although same-store sales were down by 8.3%, this still beat expectations of a 10.34% decline.
The company reiterated its 2023 outlook; a drop in retail sales and credit card revenues between 4% and 6% with adjusted earnings between $1.80 and $2.20.