What: Following the announcement of its privatisation deal, Nordstrom delivers significant holiday sales gains across both its namesake stores and Rack division, leading to an upgraded annual revenue forecast.

Why it is important: This growth across both retail divisions suggests that Nordstrom's transformation efforts are gaining traction, supporting the timing of its privatisation as the company seeks greater flexibility to implement long-term strategies.

Nordstrom reported a 5.8% increase in comparable sales and a 4.9% rise in total sales for the nine-week holiday period ending January 4. The Nordstrom banner saw net sales increase by 3.7% with comparable sales up 6.5%, while Nordstrom Rack achieved a 7.4% net sales increase with 4.3% comparable sales growth. Based on these results, the company has raised its revenue growth outlook to 1.5-2.5% from its previous forecast of flat to 1% growth. The strong performance comes as Nordstrom moves forward with its $6.25 billion privatisation deal, announced December 23, where the Nordstrom family and El Puerto de Liverpool will acquire all outstanding shares at $24.25 per share, with the transaction expected to close in the first half of 2025.

IADS Notes: Nordstrom's strong holiday performance comes amid significant corporate changes. Following the announcement of its $6.25 billion privatisation deal with the Nordstrom family and El Puerto de Liverpool, the company shows improved momentum with comparable sales growth. This success reflects Nordstrom's strategic focus on both its full-line stores and Rack division, as the company prepares for its transition to private ownership.

Nordstrom holiday sales gain 5.8%, lifts sales guidance