Last quarter, JWN shares tumbled (-7%) post-earnings when the retailer posted net sales -13% lower vs. the same quarter in 2019, and a wider than expected loss with nods to elevated labor and shipping costs, and supply chain constraints.
These lower-than-2019 results were present in the full price Nordstrom and discount Nordstrom Rack brand. While Nordstrom Rack sales remained -13% lower vs. 2019, TJX and ROST returned to pre-pandemic levels. Ouch.
Heading into Earnings, what does LikeFolio data reveal?
Nordstrom is well-known for its exemplary levels of customer service and in-store experience (like tailoring, and a customer-first attitude). This has translated to high and rising levels of consumer sentiment.
Nordstrom is also being bolstered by reopening trends.
As many employees return to work (and some to school), there's an increased need for new clothes.
Mentions of buying new clothes +11% YoY, returning to the office +37% QoQ, back to school shopping +97% YoY
Nordstrom noted: "In the past few months, Nordstrom.com has seen a +165% increase in searches for "work clothes" as people gear up for the office.
A growing social calendar is also a driver for Nordstrom, as consumers need options other than loungewear and wardrobes are falling out of style.
But Nordstrom's Anniversary sale mentions came in a bit weak on our end, registering lower vs. 2019. In addition, outperformance from Macy's last week sets a high bar.