Nordstrom, Inc. JWN reported first-quarter sales growth of 18.6% year-over-year to $3.57 billion, beating the consensus of $3.28 billion. GMV increased 19.6Y Y/Y; Nordstrom banner net sales increased 23.5%, and GMV increased 24.8% Y/Y.
Digital sales were flat compared with 2021 as customers increasingly chose to shop in-store. Digital sales represented 39% of total sales in Q1.
Adjusted EPS was $(0.06), below the consensus of $(0.05).
The gross margin expanded by 190 bps to 32.8%. Adjusted EBITDA was $166 million, compared to $57 million in 1Q21, and the margin expanded by 276 bps to 4.7%.
Ending inventory increased 23.7% Y/Y; one-quarter of the change in inventory levels versus 2021 is due to the pull-forward of Anniversary Sale receipts.
Nordstrom generated cash from operating activities of $187 million in Q1, compared to cash used of $(364) million a year ago. It held cash and cash equivalent of $484 million as of April 30, 2022.
The company ended the quarter with $1.3 billion in available liquidity, including $484 million in cash and the full $800 million available on its revolving line of credit.
Dividend & Buyback: The board declared a quarterly cash dividend of $0.19 per share to be paid to shareholders of record at the close of business on May 31, 2022, payable on June 15, 2022. The board also authorized a new $500 million share repurchase program.
FY22 Outlook: Nordstrom expects Revenue growth of 6% to 8% year-over-year, EPS of $3.38 to $3.68, and Adjusted EPS of $3.20 to $3.50, significantly higher than the consensus of $3.12.
It expects an EBIT margin of 5.8% to 6.2% of sales and an Adjusted EBIT margin of 5.6% to 6% of sales. Leverage ratio of approximately 2.5 times by year-end.
Price Action: JWN shares are trading higher by 8.08% at $22.35 during the post-market session on Tuesday.
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