For fiscal 2024, Nordstrom announced that its expects revenue range of 2 percent decline to 1 percent growth, comparable sales range of 1 percent decline to 2 percent growth, EBIT margin of 3.5 to 4 percent of sales and EPS of 1.65 dollars to 2.05 dollars.

The company's weak forecast compared to LSEG estimates of a 0.04 percent sales rise and analysts expectations of 1.98 dollars EPS resulted in shares falling 10 percent in extended trading.

"We delivered on our 2023 guidance and are confident in our expectations for continued sales improvement and sustained profitability in 2024," said Erik Nordstrom, chief executive officer of Nordstrom, Inc.

Review of Nordstrom’s financial performance

Nordstrom’s fourth quarter net earnings reached 134 million dollars or 82 cents per diluted share, while the company reported adjusted EPS of 96 cents.

For the full year, net earnings were 134 million dollars and diluted EPS was 82 cents, with EBIT of 251 million dollars or 1.8 percent of sales. Adjusted EBIT was 567 million dollars or 4 percent of sales and adjusted EPS was 2.12 dollars for fiscal 2023.

Net sales for the fourth quarter increased 2.2 percent and GMV increased 2 percent and full year revenue including retail sales and credit card revenues, decreased 5.4 percent.

Nordstrom banner net sales decreased 3 percent and GMV decreased 3.4 percent compared with the fourth quarter of 2022, while net sales for Nordstrom Rack increased 14.6 percent.

In the fourth quarter, active, beauty and women's apparel had the strongest growth and for fiscal 2023, active and beauty had the strongest growth versus 2022.

"In 2023, we continued to make progress against the priorities we identified at the outset of the year to improve the customer experience and drive better financial results," added Pete Nordstrom, president of Nordstrom.

Digital sales in the fourth quarter decreased 1.7 percent and represented 38 percent of total sales during the quarter and 36 percent of sales for the fiscal year.

Gross profit, as a percentage of net sales, of 34.4 percent increased 125 basis points.

On February 28, 2024, the company’s board of directors declared a quarterly cash dividend of 19 cents per share to be paid to shareholders of record at the close of business on March 12, 2024, payable on March 27, 2024.

During fiscal 2023, the company opened or relocated 20 stores and during the fourth quarter, Nordstrom closed one Asos/Nordstrom store and one Nordstrom Rack store.