What: Nordstrom concludes 2024 with strong Q4 performance, reporting 4.7% comparable sales growth and expanded margins, while advancing its privatisation plans with El Puerto de Liverpool.

Why it is important: The results validate Nordstrom's multi-channel transformation strategy, demonstrating successful integration of digital and physical retail while maintaining profitability during a significant ownership transition.

Nordstrom's fourth quarter performance demonstrates robust growth across multiple dimensions, with comparable sales increasing 4.7% and gross margin expanding significantly by 290 basis points to 37.3%. The company's digital channels maintained strong momentum, representing 38% of total revenue, while both physical store formats showed positive growth. Nordstrom banner comparable sales increased 5.3%, while Nordstrom Rack achieved a 3.5% increase. The company's strategic focus on operational efficiency yielded results through improved inventory management and reduced shrinkage. Women's apparel, active wear, and men's apparel emerged as the strongest performing categories. Additionally, the company announced leadership changes, with CFO Cathy Smith stepping down following the annual report filing. This performance comes as Nordstrom approaches the completion of its privatisation deal with El Puerto de Liverpool, positioning the company for its next phase of growth under new ownership structure.

IADS Notes: Nordstrom's Q4 2024 results build upon a year of consistent improvement, as evidenced by the company's strong performance trajectory. In November 2024, the retailer reported a 4.6% increase in net sales to $3.35 billion, setting the stage for the robust Q4 performance. The company's strategic balance between digital and physical retail has proven effective, with digital sales now representing 38% of total revenue, supported by the successful launch of a new marketplace platform aimed at tripling online product assortment. This digital growth, combined with improved operational efficiency and a 290-basis-point expansion in gross margin, demonstrates Nordstrom's successful execution of its transformation strategy as it approaches privatisation with El Puerto de Liverpool.

Nordstrom reports strong Q4 performance