(Reuters) – Nordstrom Inc forecast full-year profit and revenue above Wall Street estimates on Tuesday, as it bets on strong demand for its clothing and footwear, sending its shares up 34% in extended trading.
The company, which started as a shoe store in 1901, said it expects to be in a position to return cash to shareholders in the first quarter this year after suspending its quarterly cash dividend and share repurchases in March 2020 to weather the impact from pandemic.
“Our primary focus is on three areas: improving Nordstrom Rack performance, increasing profitability and optimizing our supply chain and inventory flow,” Chief Executive Officer Erik Nordstrom said in a statement.
The company also beat quarterly sales estimates helped by its efforts to keep its shelves amply stocked during the holiday season.
The department store chain said it expects fiscal 2022 revenue to rise between 5% and 7%, while analysts on average forecast a 3.66% growth, according to Refinitiv IBES data.
It also estimated full-year earnings per share, excluding the impact of any potential share repurchase activity, to be between $3.15 to $3.50. Analysts on average were expecting $2.01 per share.
Total revenue rose to $4.49 billion in the fourth quarter, from $3.65 billion a year earlier. Analysts on average were expecting $4.35 billion, according to Refinitiv IBES.
Nordstrom’s net income rose to $200 million, or $1.23 per share, in the quarter ended Jan. 29, from $33 million, or 21 cents per share, a year earlier.
(Reporting by Mehr Bedi and Praveen Paramasivam in Bengaluru; Editing by Amy Caren Daniel)
