Earnings Wrap: Nordstrom Reports Latest Results + More
FN keeps track of all of our earnings coverage for retailers and footwear companies here.
Nov. 22, 2022: Nordstrom, Inc. (JWN)
Earnings: The company reported a net loss of $20 million in the third quarter, down from net income of $64 million in the same time last year.
Sales: For the third quarter, net sales were $3.4 billion, a 2.9% decrease versus the same period in fiscal 2021.
CEO Comment: “We delivered both topline and bottom-line results in line with our expectations in the third quarter while enhancing our strategic capabilities,” said Erik Nordstrom, CEO of Nordstrom, Inc. “When customer demand decelerated in late June, we took action to align inventory and expenses with the changing trends, which has prepared us to navigate the current macroeconomic environment. This quarter our teams continued to advance our ‘Closer to You’ strategy and supply chain capabilities, as we focus on initiatives to drive profitable growth and achieve our long-term strategic and financial goals.”
Outlook: The company expects revenue growth for the full year, including retail sales and credit card revenues, of 5 to 7%.
Nov. 22, 2022: Burlington Stores, Inc. (BURL)
Earnings: Net income was $17 million, or $0.26 per share compared to $14 million, or $0.20 per share, for the third quarter of fiscal 2021.
Sales: Total sales in Q3 decreased 11% compared to the third quarter of fiscal 2021 to $2.036 billion.
CEO Comments: “In Q3 we achieved sales and earnings that were within our guidance range, but we are not happy with this performance,” said Michael O’Sullivan. “As we said on our August earnings call, as an off-price retailer we should be able to perform better in this environment despite the significant macro headwinds. Recent results from other off-price retailers reinforce this view.”
Outlook: The company expects comparable store sales to decrease in the range of down 15% to down 14% for fiscal 2022, on top of the 15% increase during fiscal 2021.
Nov. 22, 2022: Caleres (CAL)
Earnings: Net earnings of $39.2 million, compared to $59.6 million in the third quarter of fiscal 2021.
Sales: Net sales were $798.3 million, up 1.8 % from the third quarter of fiscal 2021.
CEO Comments: “Caleres executed another strong operational and financial performance in the third quarter and closed the first nine months of the year with record earnings,” said Diane Sullivan, chairman and CEO. “These results underscore the strength and versatility of our brands, highlight our compelling product and product creation power, and demonstrate the portfolio’s significantly enhanced agility and resilience during periods of macroeconomic uncertainty.”
Outlook: The company expects adjusted earnings per share for fiscal 2022 to be in the range of $4.30 and $4.40.
Nov. 22, 2022: Dick’s Sporting Goods, Inc. (DKS)
Earnings: Net income in the third quarter of 2022 of $228 million, down from $316 million the same time last year.
Sales: Net sales of $3.0 billion increased 7.7% versus the third quarter of 2021.
CEO Comments: “We delivered an exceptionally strong third quarter with our comps increasing 6.5% and EBT margin of 10.3%, which was over three times our 2019 non-GAAP rate,” said Lauren Hobart, president and CEO. “Dick’s is a growth company, and our Q3 sales results are powerful evidence of our sustainable growth story. Because of our continued strong performance, quality of inventory and the confidence we have in our business, we are raising our full year 2022 outlook.”
Outlook: The company is raising its full year 2022 earnings per diluted share guidance to $10.50 to 11.10, up from $8.85 to 10.55 previously.
Nov.18, 2022: Foot Locker, Inc. (FL)
Earnings: Net income in the third quarter of 2022 was $96 million, or $1.01 per share, down from $158 million, or $1.52 per share, the same time last year.
Sales: Total sales decreased by 0.7%, to $2.173 billion, compared with sales of $2.189 billion in the third quarter of 2021.
CEO Comments: “Foot Locker’s solid third quarter results in the midst of ongoing macroeconomic challenges are a testament to the strengths of this organization that I am honored to now be leading,” said Mary Dillon, president and CEO. “Despite the tough environment, our expanding customer base remained resilient, and I’m proud that our team delivered sales above our expectations, thanks to their exceptional execution.”
Outlook: The company expects total sales for the full year to be down 4% to 5%.
Nov. 17, 2022: Ross Stores, Inc. (ROST)
Earnings: Net earnings for the third quarter of 2022 were $342 million, down from $385 million the same period last year.
Sales: Net sales for the third quarter were $4.565 billion, down slightly from $4.574 billion the same time last year.
CEO Comments: “Third quarter results were above our expectations as we delivered stronger values throughout our stores,” CEO Barbara Rentler said in a statement. “Operating margin for the period was 9.8% versus 11.4% last year, reflecting the deleveraging effect from the comparable sales decline as well as pressure from higher markdowns and unfavorable timing of packaway-related costs.”
Outlook: The company now expects fourth quarter same store sales to be flat to down 2% on top of a 9% gain in the prior year, with earnings per share forecasted to be in the range of $1.13 to $1.26.
Nov. 17, 2022: Kohl’s Corporation (KSS)
Earnings: Net income in the third quarter of 2022 was $97 million, down 60% from $243 million in the same time last year.
Sales: Net sales in the quarter declined 7.2% to $4.277 billion.
CEO Comments: “The Kohl’s Board is focused on supporting the management team during this CEO transition period, as well as the Board’s search committee in its pursuit of finding the next CEO to lead Kohl’s,” Peter Boneparth, Kohl’s Independent Board Chair. “We look forward to partnering with Interim CEO Tom Kingsbury and the entire leadership team to execute at the highest level this holiday season, while also capitalizing on opportunities to strengthen the business.”
Outlook: Given the recent volatility in business trends, the significant macroeconomic headwinds, along with the unexpected CEO transition, the company will not be providing guidance for the fourth quarter, and therefore is withdrawing its prior full year 2022 guidance.
Nov. 17, 2022: Macy’s, Inc. (M)
Earnings: Net income in the third quarter of 2022 of $108 million, down from $239 million the same time last year.
Sales: Net sales in the quarter of $5.2 billion, down 3.9% versus the same time last year.
CEO Comments: “Our Polaris strategy is working. In the third quarter, we achieved solid top line results and a strong beat to our bottom line guidance. Macy’s brand position as a style and fashion source resonated with our customers, while luxury continued to outperform at Bloomingdale’s and Bluemercury,” said Jeff Gennette, chairman and CEO of Macy’s, Inc. “We know the consumer is under increasing pressure and has choices on where to spend.”
Outlook: The company is reaffirming its annual 2022 sales guidance and raising its earnings guidance. Net sales for the year are expected to be between $24.340 billion to $24.580 billion.
Nov. 16, 2022: On Holding AG (ONON)
Earnings: Net income in the third quarter increased to CHF 20.6 million ($21.9 million, based on current exchange rate) from CHF 13.0 million ($13.8 million).
Sales: Net sales in the third quarter of CHF 328 million ($348 million), up 50.4% from the same time last year.
CEO Comments: “The momentum of the On brand shows no signs of slowing,” said David Allemann, co-founder and executive co-chairman. “This quarter has seen On reach more new fans than ever before with our mix of innovative performance footwear and apparel, powerful marketing campaigns and immersive shopping experiences.”
Outlook: For the year, On is again increasing its net sales outlook by CHF 25 million, to CHF 1.125 billion, representing a year-over-year growth of approximately 55% compared to 2021.
