American retailer Nordstrom projects revenue decline of 4-6% in FY23

06 Jun '23

2 min read

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Insights

American fashion retailer Nordstrom expects a revenue decline of 4-6 per cent in fiscal 2023 (FY23) compared to the previous fiscal.
EBIT margin, including charges associated with the wind-down of Canadian operations, is projected to be between 1.5 and 2 per cent of sales in FY23.
The company anticipates EPS in the range of $0.60 to $1 in FY23.

Nordstrom, a leading US-based fashion retailer, has revealed its fiscal 2023 (FY23) outlook, projecting a decline in revenue and adjusted earnings. The company expects a revenue decline of 4-6 per cent in FY23 compared to the previous fiscal, including a negative impact of approximately 250 basis points due to the wind-down of Canadian operations. However, the inclusion of a 53rd week is expected to provide a positive impact of approximately 130 basis points on revenue.

EBIT margin, including charges associated with the wind-down of Canadian operations, is projected to be between 1.5 and 2.0 per cent of sales. On the other hand, the adjusted EBIT margin, excluding these charges, is expected to range from 3.7 to 4.2 per cent of sales.

The income tax rate for FY23 is estimated to be approximately 6 per cent, primarily due to a favourable impact of around 2,100 basis points resulting from one-time charges in Canada, the company said in a media release.

In terms of earnings per share (EPS), Nordstrom anticipates a range of $0.60 to $1.00, including the negative impact of charges related to the wind-down of Canadian operations. Conversely, the adjusted EPS, which excludes the wind-down charges, is forecasted to be in the range of $1.80 to $2.20.

Fibre2Fashion News Desk (DP)

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