Nordstrom Stock Rises On Q4 Earnings Beat Backed By Strong Holiday Environment: Retail Sentiment Improves

Shares of luxury retailer Nordstrom Inc. (JWN) rose 0.5% in after-hours trading on Tuesday following a fourth-quarter earnings beat, lifting retail sentiment.

The company’s earnings per share came in at $1.10, beating the $0.93 Wall Street analysts predicted. Revenue stood at $4.32 billion, surpassing the estimated $4.28 billion.

The company’s fourth quarter had the strongest growth in its women's apparel, active and men's apparel versus 2023, the company said.

"Our team reacted with agility and speed to the holiday environment, responding in real-time to better serve our customers and drive strong financial results," said Pete Nordstrom, president of Nordstrom.

"Customers responded positively to the strength of our offering across both banners in the fourth quarter," said Erik Nordstrom, CEO of Nordstrom. "We maintained the momentum we built throughout the year, which resulted in full-year sales and profitability coming in at the high end of our expectations."

Sentiment on Stocktwits improved to ‘neutral’ from ‘bearish’ a day ago. Message volume soared to ‘extremely high’ from ‘low.’

Nordstrom also announced the departure of CFO Cathy Smith who is joining coffee giant Starbucks next month as its finance chief.

Nordstrom has initiated a comprehensive search for a new CFO with the assistance of a leading search firm.

In December, Nordstrom struck a deal with Erik, Pete, Jamie Nordstrom, other members of the Nordstrom family, and El Puerto de Liverpool, S.A.B. de C.V. to take the company private in a $6.25 billion transaction.

Nordstrom shareholders are set to receive $24.25 in cash for each share of its common stock.

Nordstrom shares are up 0.46% year to date.

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