Nordstrom Inc. raised the lower end of its annual sales guidance after its off-price and flagship chains reported quarterly growth that was better than expected — results that could encourage the company’s board to push the founding family for a better offer to take Nordstrom private.
The Seattle-based department-store chain is forecasting that annual sales, including credit-card revenues, will be flat to up 1 percent versus last year. That’s narrower than the previous guidance that revenue would be in a range of up or down a percentage point from a year earlier.
The top end of the outlook is still slightly below expectations from Wall Street, which sees revenue growing 1.2 percent this fiscal year, according to the average of analyst estimates surveyed by Bloomberg.
Nonetheless, the more upbeat annual outlook contrasts with some tough results from retailers in recent weeks as companies call out softer consumption amid still-high prices. The results could also reinforce some Wall Street commentary that the offer to take the company private at $23 a share is too low.
Nordstrom’s off-price Rack business and its flagship department stores both reported slightly better-than-expected results in the quarter that ended Nov. 2. At Nordstrom, sales rose 1.3 percent while Rack sales increased 11 percent, from a year earlier. The retailer has opened 23 off-price stores during the current fiscal year — a bid to seize on greater demand for deals from inflation-weary shoppers.
“We feel well-positioned for a successful holiday season,” president Pete Nordstrom said in a statement.
Nordstrom shares fluctuated in late trading on Tuesday in New York. The stock has gained 33 percent for the year so far, outpacing the S&P Midcap 400 index.
In September, the Nordstrom family made a $3.8 billion offer with a major shareholder, Mexican department store operator El Puerto de Liverpool SAB, to buy the shares the group doesn’t already own. At the time, the family and Liverpool said they owned 43 percent of the stock.
By Jeannette Neumann
Learn more:
Why Nordstrom’s Founding Family Wants to Take the Retailer Private
A $3.8 billion takeover bid represents a bet that saving the department store chain will be easier away from public scrutiny.
