JWN - Earnings call 4 2024 | Nordstrom, Inc.

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Operator

Greetings, and welcome to the Nordstrom Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. At this time, I'll turn the call over to Jamie Duies, Head of Investor Relations for Nordstrom.

You may begin.

James Duies

Good afternoon, and thank you for joining us.

want can that Investor be on I to be Relations begin, nordstrom.com. which slides viewed we to we'll mention referring section Before in the

earnings discussing slide so may an update the call today's referring and results a to the we fourth are Financial which Nordstrom, our basis and them call company's measures the refer our forward-looking turn margin Officer, EBIT our press discussion and Officer; Erik safe on comparable available XXXX this quarter directly per statements, discuss will Executive on can note Smith, And over Our to language. Participating the include to release, adjusted are Reconciliations both of now for found that the outlook, Erik. performance. business I'll at Cathy and end EBIT, with of Chief in who our share. harbor be to provide when please and website. GAAP Please earnings be Chief presentation will most QX

Erik Nordstrom

you, focused a with everyone. sales priorities for cover I'll of we're billion us today. per our XXXX. We for fourth Thank with quarter and and and afternoon, our Thank joining start XXXX quarter earnings and share what you strong performance good fourth delivered on Jamie, discuss $X.XX. $X.X net of

engaging deliver to our assortment we better holiday out worked better well guidance drive to customers. the we the of set the than enhance laid experience year, for provide or we as our full shopping within the and accomplished were right teams performance. Ahead as For what results our the hard experiences financial out, season, and do: customer

focused of do. trips achieved center of profitability, on of we these performance X in to and everything better the intended remain quarter. Throughout financial efforts, at while in purchase As customers improvement drive customer XXXX, sales, sequential we keeping the fourth a priorities result we net the number

performance. Rack that way XX One in improve by opening priority stores first Nordstrom new was did that Our to was we XXXX.

deliver investment of capital excellent with New their Rack be they stores in continue of excess period. an as short well a payback relatively to cost

not comparable quarter that also high the sales growth Rack's grew the fourth Rack single as in sales new just However, the store digits. it's by drove impressive stores net

is Our the traffic the want. Rack delivering we improved digital quarter, also full profitability. great contributed improve customers conversion From sales, in prices Rack a great in to know we business which focused our fourth to as that and offering brands what our year at standpoint, our merchandise efforts enabling NordstromRack.com's at

to priority second in XXXX Our inventory increase was productivity.

managing which to on as we focus us evidenced by to the continue We start the fiscal inventory sets fourth in spread year. quarter, a from merchandise sales well effectively new up as standpoint the inventory positive

inventory our newness of given had reduce Additionally, overhang our met of and was efforts fewer overall is to to our items designer stronger through. inventory year than we clear aged ago, it the target, a

another delivered delivery chain Our our QX, team that third our basis while a sixth XXXX. to in supply In efforts at capabilities, speed. click of expense was variable to continuation improving of points improvement time, the consecutive XX-plus quarter, optimize of began savings, the chain supply for priority same XXXX in the

unit. banners California, chain, our not Center, lower Fulfillment the related We facility, to impairment $XX from automated we our to charge relocation. We're only Omnichannel in efforts Coast drive to processing experience. as per our our on our the efforts of strategic the better operations Center relocate efforts but results supported outcomes for our optimize at financial the to customer decision Building with of supply Bernardino, is made momentum to did our capabilities offering West and have the the Nordstrom San this cost and we company, been our XX to has for positioned in due they Riverside. Nordstrom XXXX million have facility. miles pleased made well It following substantially our improve customers and now against several Rack across WCOC scaling priorities enhance to investments the away a most recorded years also newest, a just serve for asset X is

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growth, Turning for to year. priorities We're plan Building the our for Driving in the and optimizing at did in we X Nordstrom Rack. the operationally, XXXX. our confident XXXX, building refreshed work on key we've momentum XXXX: banner upon

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serving improving on breadth addition more expect more of occasions with engagement that from Our while us. to efforts customers are retention designed assortment create they in to the

optimizing Our our we've life second its the faster operational maximizing for as a supply as capabilities. inventory our XXXX, cycle. that and entails driving for value This in focus upon builds customers on our chain success through fulfillment well delivery optimization, priority had

speed to customer. product with inventory continue We of and improve the integrity to will our positioning along increasing inventory optimize the efforts

scale are the the within our goal experience making end systems our with the customer position. enablers inventory streamline improving in improving processes, investments and inventory We standardize our enhancing utilization expanding and technology all business, movement cost of to and of the and our RFID

Rack Our new a third as a Rack. more priority XXXX new investment Rack for well as the stores is building Opening is the customers drive momentum banner on to way at reach growth. and profitable key

of convenience continues In between the cross-banner with the customer, customers network efficiency As us. We we're enjoy giving services in-store closer to our stores, Expanding advantage our brings of opportunities consistently and our count to them XX taking of retention. our we're new to and company they banners, and more the finding new reasons improve. engage Pick over new how offer, customer shopping opening services continue Online, omnichannel we for open acquisition, performance returns, supports hear more including customer stores we our for opened stores XXXX. are engine Rack growth our Buy accounting also alterations. of stores be and a largest in our our XX XXXX, Up new as to source intent to In-Store is stores, long-term XX%. Growing store

Rack addition X/X momentum stores brands the shop. us XXXX. they top end, continue enhanced customers we also we to of stores, years. our X enhance capabilities the offerings great roughly aim our leveraging our in great assets, intend Nordstrom and experience well will choose at retained the Rack by online omnichannel number We by prices By as customer to enable Nordstromrack.com. Rack to of growing growth supported to In that deliver of migrate to within led of for deliver banner customers fact, as in to line grow our to at profitable digital strive the regardless as digital how suite selection To

turn I that focus business priorities. as exceptional thank execution we XXXX their service efforts We're it as we'll of enhance company. for drove and over confident for that outcomes an over financial of to day-to-day customer proud Cathy hand our even I'll And the on with and that, the as results. Through remaining of stronger in it well end improved steadfast I our the to a our priorities, set on financials, a want we're experience undertook the XXXX customers while that review teams to the of Before Cathy. clear to

Catherine Smith

all Thanks, today. thank for us Erik, joining you and

allocation at EBIT, of speak I for the forward-looking EPS, in relevant EBIT mentioned our will it end beginning was capital reconciliations earnings of from outlook adjusted additional release, cost accounting, to commentary our statement at basis with timing which quarterly this margin are about it quarter priorities. fourth presentation XXXX found retail outlook, discuss on to an begin of when our provide call, results transition our which both be then this and be and results, and the close available covering our in the and and website. I'll the can our by some on Although our for for

benefit sales including increased and the gross a fourth with with the of down XXX in Canadian to net from quarter, basis Rack the and we the quarter. basis the with wind as line points in were decreased per banner ago year this the quarter, margin, net on year-over-year fourth we like-for-like were the EBIT GMV XXX fourth XX%, basis. impact XXX year, increased X% XXX and QX, impact point the to that steady a reported points XXrd operations. Total increased results the financial XXX and Nordstrom Nordstrom a the increases a EPS, For operations. Net fourth focused related we which related quarter. guidance. In that in to the on driver. and unfavorable sales from XXrd quarter-over-quarter week flat the X%, of growth finished $X.XX earnings momentum X% essentially in $X.XX year despite our includes week of points basis saw XXrd a Nordstrom delivered in of negative X% compared the basis on banner net of related benefit week. Throughout including sales progress the throughout down sales wind Canadian we benefit We in we point decreased basis top pleased share GMV quarter.

total in quarter and in compared with year the same of the a of buying and period improvement. we basis inventory XX.X% sales, X% sales. fourth during to fiscal in points as Digital markdowns, due sales sales decreased net the percentage digital same lower XX% profit, period sales increased leverage XXXX, saw quarter. Gross sales compared the higher XXX quarter-over-quarter Although quarter. with lower X% last decreased Ending on occupancy costs of the represented

We are delivered progress on productivity pleased with inventory we this the year.

points well to supply versus including and quarter, as basis a levels increased net exited sales which set us the we impairment Reported inventory the fourth $XX new improved mentioned, expenses percentage year year. start related XX with Erik SG&A last As the up chain asset in year, of charge. a fiscal million

expenses net variable SG&A of efficiencies as on costs impact year a the improvements in line percentage of Excluding in leverage the costs the quarter higher labor ago higher sales. from by and charge, as sales chain supply were was with offset

deliver last supply chain year. to results Our initiatives over continue the strong

for ago ended the million the X.X% year over margin EBIT Our available and in billion in the X.X% quarter including we with versus was fourth quarter, $XXX quarter $X.X liquidity, in cash. fourth

and remain position financial Our solid. balance sheet

foundation business us to our more for shift to moment fiscal our to for operating I units a Next, the priorities the deliver cost method take This to XXXX of cost method. accounting about effectively. on want retail to from speak in lays conversion and inventory the

at level, in in slight utilizing for financial results. the guiding us our headwind accounting speed. moment. see with in in We a We will result on that executing reporting purposes that will a item anticipate XXXX and cost profitability in intention XXXX More

outlook the our underlying assumptions guidance. I'll start to and the current for environment Turning by related year, discussing our

expect momentum durability and of year strength XXXX toward long-term We of our the be a business. continued to

revenue we in of range mindful We approximately execution includes to student and payments. basis the discussed, which Erik an rates increase decline from of inflation, focused XXXX year in the the of expect that resumption make to XXXX's progress to XXXX, XXrd interest the XXXX week a see external of and remain against that is full a continue cautious on results. XXX solid X% consumer X the a of loan X%, discretionary of environment, of headwind our priorities. In purchases of higher will we priorities points following in expect the light Regardless

be slightly a X% XXXX. net to in typical credit net to cadence. of We over We card should expect closer XXXX, follow represented anticipate X% In credit of card sales. our revenue quarterly revenue revenues sales

that new we basis QX. beginning are sales quarterly Rack providing data stores, consistently comparable Now a opening will we on in be

As such, XXXX XXXX. a of a an X% we XX in increase in to expect total weeks versus sales of of company X% range comparable in decrease

profitability. Turning to

margin growth. EBIT SG&A EBIT aforementioned the We to X.X% in with to of accounting pressure increases in expect to slight range the support modest X%, reflecting from conversion retail due Rack cost to and

weighed range by results be rate, year We in modestly our an increase perspective, percentage upon XX%. From the as point well to per our typical to back of in as rate expect relative method $X.XX our to $X.XX, a at in change share anticipated relative effective again, earnings accounting of X XXXX. increase we tax the effective full rate XXXX, to the anticipate tax

Under the estimated expectations few guidance we cadence under quarter-by-quarter to accounting, markdown a Although don't recognition last our primarily in the of QX would first in the retail recognition QX. benefited method focus method on basis, modestly timing the typically weigh versus a offer XXXX. our I like method results, comments retail year's cost heavier on anticipated for on the the of the year. The on markdown to of is QX to timing half of

the do cost not anticipate to under we that repeat. However, method,

results We be earnings. to a and slight QX expect year's of to this near the X/X loss QX's have to about breakeven

traditional the QX, As should out the sale as headwind the week from the method X cadence year. throughout a change in anniversary accounting almost our follow entirely estimated rest second of as quarter shifts year the lessens year the back progresses, in with the of more

remain allocation, the Turning to priorities our capital same.

investing in serve growth. customers is our business to long-term better The the support first and

to expenditures sales. plan X% of continue to We capital of net X% for

credit to reduction and an of investment-grade improvement our Our reducing combination debt continue second ratio leverage. through a earnings We remain a priority leverage below target and committed to rating is X.Xx.

retire We million hand. maturity in to cash of that a bond $XXX April have intend on we using

in made third our on and share. In closing, and at forward both this have, is I'm a against shareholders. for Directors week, the year that per quarterly Our year the Last progress opportunities banner our the to priority $X.XX of guidance we delivered Nordstrom of cash progress after getting we returning Board growth looking dividend our we'll cash and declared Rack. great the to make priorities XXXX.

be you earlier, durability strength to with And thank our expect we year XXXX of I that, interest As long-term and of Nordstrom. are toward continued the for a in Jamie, we mentioned questions. business. We momentum for your ready

James Duies

Thank [Operator Cathy. to you, We'll move Instructions] session. now the Q&A

Operator

Owens first with KeyBanc Markets. Our Instructions] [Operator of Ashley the comes from line question Capital

Chandana Naga Madaka

on Chandana is today. Ashley for This

think to I intent could stores break of the growth of maybe openings, those store you And from year year? Rack help Rack how much at banners new speak come new this down openings in you mentioned to looking cadence stores? if stores Could throughout open XXXX. you the So versus us same the XX will

Catherine Smith

is Chandana, Cathy. this

the course So We're very we'll fall drive year, excited first specifically the have course acquisition return the cohort. of in customer that like to be the but them of to new investment. there'll Rack about it's strong spring of have continued the -- banner, we a off, -- see they on you'll They or spread great cohort a the They're year. economics. great XXXX, just continue and throughout time a a very, to Nordstrom see opportunity. be other, the one through We don't source and

about excited them So we move continue as to we forward. be

Operator

next with question Helgans Jefferies. comes the Our Ashley from line of

Blake Anderson

It's Blake Ashley. on for

on for sales ask to XXXX. range wanted guide I First, the

you items what versus banner, for And your you AUR expectations X transactions? maybe was any color expectations then those Just by if XXXX. about could and in that can give for on talk

Catherine Smith

I'll and as on well. can Erik Blake, answer start Maybe,

want a revenue is parse so acknowledge week a is as though, We're and extra I had a question, bit growing. -- me so XX-week said, versus for going revenue. little to XX- guidance excited stronger in regards the grow to versus the where to we with impact, So about the with think little revenue comp is guidance it's comp just to let guidance we market XXXX. That -- to your guidance Rack grow the versus the Comp revenue, first, off-price of we're channel. to

excited see into very we digital into We're we market to and as growth the the the things very, point comment growth will shared but marketplace be us, drive like then on We to that going You're below there, choice we're That drive Erik -- growth. and price driving going digital. for count we're as grow drive that you'll that driver and to $XXX expect price know overall under that we're lean so is, year lower obviously about then there, on to count. We're and this that in like us help assortment continue market's the experience from continue focused matter to digital, to going the move see to in next. for remarks. growth focused digital point choice

to his stores. growth more So about we're there. focus think you that that a by channel, continuing remarks. most the prepared be the the but customers. the the about excited in of last on the stores assortment as Expect Erik our And matter in banner in about flattish place would then in to driving talked bit for little that be range the having really we're Nordstrom

effort sure experience for. that concerted known on that great a we're making and that we do this year, have having service We

AUR, around but predict. of and AURs is expecting, inside you a down, banners to help the predict. difficult to difficult for then And to little each start hopefully all be bit that come will think, a going guidance. that color to channels I more bit one that's on to little We're So with of that

Erik Nordstrom

more like One Yes. other detail. I guess add. I'd color

of banner throughout that on all, the of did AUR at traffic Store the side, leading both year. banners and in but store value soft drive in rack.com. order continues selling improve is Nordstrom.com value Nordstrom stores both sequentially increased traffic is to the is traffic. improved helping Digitally, although be It selling trip going up. First price, to some average those prices, at soft and traffic, which both average average also again,

Blake Anderson

X.X% hear margins. give X%, EBIT future -- top I takes year? change know investing And any on love guide What's you need what And this the top any follow-up detail for helpful. you in The or our of those us is expansion. line you appreciate year? on year. next see do headwinds puts on commentary get to of and then the I order below initiatives super on just That's growth. you this you Can slightly in kind more and the kind to is accounting for the elaborate can you're color. to then then need the in said store the margin any would line other on to X%

Catherine Smith

Yes.

as very both We're thanks. well drive share market So to margin expansion. as gains focused continuing on

our margin we So to progress answer year made expansion. headwinds, drive offset, the though, XXXX, that's focus headwinds. of for is expense great in question, know where that bit by a to concluded. guide to we some gross year expansion We being Inside though, margin is. in the SG&A continue It this would your XXXX, just expect so gross little

to drive that with investments fully offsetting. we're openings continue places it little like in Rack in chain, like store a new bit and in things labor inflation of While offsetting not we're we supply productivity

Operator

of Piper Our next the with comes question from Yruma Ed line Sandler.

Edward Yruma

update of kind of stores. markets? for we'd they those of ramping if city for to would I us me. center, as the quickly as ones kind I some your traffic had Rack understand you some on Have an in newer first, could hear give as return period trends, of pressured have then maybe follow-up, profile. expected, love new particularly of a any on know to color the been quick you box but were love there. And you some stores, Nordstrom time, Two by guess, big they

Erik Nordstrom

years. Erik. we through that urban difference can really the take through and of like Yes, couple one. 'XX this for have we first get seen kind one. Cathy Yes, pandemic stores suburban second between of the did I'll a is not

stores, shown of or real strong York big has this fastest-growing our our flagship New growth. stores urban particular, year Some in past

Catherine Smith

Rack answer return question. profile, stores, On the your to the

year, all it's We cohorts, in kind last rebuilding fall continue the the in into new edges. those from spring a to a the ones We'll a little took from ones. take learnings evolve know, into so this earlier of as year opened XX started learnings stores later both this the of around you muscle. cohort. of X had we the a XXXX, kind we bit We and As cohort we

So things like would investment in it inventory, the much store, a keep all better. They we really better of those They new amount and getting come how out support of just with things. you imagine. strong, as

are growth make the We to working sure sustain though. throughout duration we that

upfront are our about We with for and All in, we about inventory total banner lots need really, great do acquisition investment, great though, supporting marketing, excited of customers that. our make we brand. on of great we're lots and to -- to return of the total new continue really sure

Operator

question of Goldman next the from Sachs. Our Roach comes with Brooke line

Brooke Roach

I opportunity some in sit improvement was the that total you like what of this hoping to dot-com to get compared profitability rates? does saw rack.com's It year. an you're continued nice the business. full margin And company improvement update today for in on on what's XXXX? and sounds profitability Where line seeing

Catherine Smith

but Maybe can as obviously, well. add I'll start, Erik on

digital has it distinct profitable. business get to ours a of the So effort been Rack

the drive has As great is and year. banner. continue Nordstrom.com the actually is us, Really profitable we've a the business shop. is The lead Nordstrom.com team for business have we'll so that that to the though, to it spoken choosing vehicle to, that full improvement. for done in to of profitable quite business, profitable. It's XXXX, how work one It's digital growth it's of the our channels, Nordstrom customer most our and proud

continue still growing on still rack.com your Nordstrom.com, Going work maybe is forward, that. to on though, where We'll in expanding margin. versus or question to

the our that as turning Some on completely we like things then come omnichannel into on more fundamental worked inventory they integrity Rack. customers 'XX things capabilities were us for of to in allows start

rack.com's to past black well with profitability, is but pleased solidly -- in they're that that. where So and both we'll continue them of expand Nordstrom.com the

Erik Nordstrom

it think does cuts customer first, experience add the customer customer every look and I'd look digital across -- which that. digital and Almost you is I in lens, just I'd Brooke, our context, the foremost, on that a at business, -- we at first physical. Yes, through

look serve actions being really look our to digital reducing years, we we last some unprofitable tough sales. better. That decisions said, were over that customer really if some about leverage some over ones made So -- couple you the the we and physical at assets back our have can and taken how of bigger

So growth -- part store Canada of out would in business be shutting a rack.com doing of example. our fulfillment another that, is down

we it is really look in well. it, scales model of business -- strong, digital the So as Cathy's financial to our point well. scales and at It really

need We have, over Both address we out growth, the really of last couple unprofitable of growth much business. the of the parts for and very poised of years, both are platforms them.

Brooke Roach

I Cathy, if could just ask follow-up. one quick

in sales the the on fee and the the on on elaborate within credit of revenue close the late impact what changes announcement you at gave X% are credit assumptions helpful based revenue XXXX. to of color embedded Can some that You that, card today? in is

Catherine Smith

And of today interesting our for release. timing to. Yes, the happy sure, earnings day given it's on announcement

higher us that portfolio piece of be the our to of therefore, late reminding with tends to our some credit quality start our to want are credit fees than the so peers, I average So a overall P&L. smaller of revenue

most soon our start the challenges, that expect we'll the some we'll be estimate continue I'll -- suspect as monitor and that. the importantly, regulation, see we've been estimate challenges, But has new as in legal too. federal there do best some legal our actually register guidance included to there. We I today. to So registers given

So we've been monitoring it.

consumers politically both be on continued will late and there expect We from fees. pressure

have. best so we the our And build did estimate we that guidance into

Operator

comes Telsey question next Your from Group. Dana with Telsey line the of Advisory

Dana Telsey

everyone. afternoon, Good

I year What was was with accessories how some merchandising you're there? And the this for quarter costs different and this accessories or on Red and margin? believe from year the then about this Women's on delivery Active, Any on in most this quarter, improved expanding thinking mix. following what last are the embedded freight of margin. last merchandise Apparel in the up quarter, with that being and you quarter impacts comments, Sea seeing also Beauty just Just -- costs

Erik Nordstrom

in strong particular, of in think been accessories, handbags category as not kind for Yes, everyone, for has through which a accessories big year. is I the

So sequentially we did category every see have That to that QX continue to QX. merchandise from said, single we improve being that.

also encouraged about that. we're So

in merch effect really point, an from question, on Sea margin see the what's our merch Red On this at don't we margin. on going the

some we delayed effect a goods results. material of but bit, any portion see have our We our to that's don't

Operator

from comes the question next Our Cowen. of line with TD Oliver Chen

Neil Goh

Goh well Nice Neil year? And today. promo into implications get in the And throughout the merch see inventories margins inventory managed as any line environment on are would for the to with fiscal expectations on year? then how through leading on What your sales Oliver summer? describe management we is you growth. This spring pretty

Catherine Smith

add. maybe give Neil, a and start can then I'll Erik

So to on the thank inventory productivity management comment inventory. of on growth, or your the point, inventory for you

I of really team trends to a new think chasing being building job into and the some it. terrific the did disciplines and sensitive

health. really ended in inventory year poised the we're think as I we well

customers. then we to ended new and important the the which us always As newness, some have begin year allows for year, is

and at progress inventory productivity. So about inventory the is very, we've very excited around made where

the year, through As we prudent. we'll move be

really continue same the on where team's we going to front The we're year at be chasing excited sure of the into we're foot disciplines like demand. making to we're So feel there. a

nice. that's so And

We're continue when new support going to going you We're would to inventory. expect that Rack to think continue the about stores. support Beauty. we So to

that And will a about will little on to that think it a that as forward. I'll Erik place opine of be support promotional with bit to maybe inventory. ask extra environment, then going continue we on So

Erik Nordstrom

didn't promotional I'd are through it not environment. seeing We elevated right not it now. seeing see really QX. We're Neil, Yes, we an say

unusually as tell, an as So don't elevated can anticipate we we best promotional environment.

Operator

the Michael from comes question ISI. Next with Binetti line Evercore of

Warren Cheng

already This is best of that were credit today. fees what included for Cheng I is on last elaborate follow-up late the Brooke's The fair that guidance for benchmark just Warren low in that on to in Could back just Michael. business? And on think for comment credit revenue stream. broke clarify still Is ruling. you the time percentage a that means? also a income, your CFPB the today's the on your I XXXX, was I question had outcome card estimate out used you just teens wanted

Catherine Smith

Yes, Warren. happy to,

I off, actually that in we that didn't first supplied So know XXXX. information

Nordstrom the I the been guidance. is. team, of we -- I ruling know, a that's be our it'd comment know knew in estimated and of we The came out CFPB about obviously, what there. guidance Obviously, came fortunate -- said evolve. the a best had it a business where I there, it's we ago, exactly all customers. our we're our the That estimate loyalty and customers as don't that had coming going estimated. said, are be there's think, out, going be ton just long the for time included that thank portion pulled to around the you card. It but impact to today I good So continues information there's been our them best still our of of It's out know is to shared speculation. you if at. And of

today. less regards include income, guidance disclosed So we portfolio. than With of late quality of but gave our competitors, credit is the amount our tried it we fees as to percentage that, in our haven't given the of that to a we our

Warren Cheng

Got then I in also you focus ramp your And stores versus product behavior just productivity to second the last it. expectations? Rack we the also was the and does That's for How follow-up I up that can the Rack months. could stores if wondering XX stack very And business. for discuss these the new a relative helpful. against had the base? on cohorts a have then opened on

Erik Nordstrom

little a Yes, a foot per square is our average sales is stores new this Warren, above on productivity Erik. basis. our Sure.

be to volume tend do they So smaller stores.

As to the a you locations. our imagine, what size but bit And stores of portfolio we've we best had -- the our been in average with start smaller has date previously. we than is -- --

build productivity really excitement particularly see upon a community. a and at lot So The we get strong we is the us we -- We markets. to energy new do really for to get traffic an in go Rack of opening, good. ramp the opportunity

into first For store, some company we Nordstrom don't there market. those it's have of that entry communities a our of where the

first access stores, think competitive opportunities cuts aspects takeaway upon of continue the as the we that's that a brands advantage. continue drive strategic strategic comp and do for main our of business. we is The knowledge we to And think second think is to those associate boats. all year build The to The year of business, us key these kind brands, there's really really that -- Nordstrom. across I for all to the and the still which opportunities focus of Rack coveted think focus our lifting And really there emphasize online customers So we we to it lot businesses. business, Rack have brands with and the leverage, on growth. a of new

Operator

next of Hutchinson with question America. from comes the Bank Lorraine Our line of

Lorraine Maikis

ask do very would I that about you What your we're the of successful costs. you the expected And see wanted distribution initiatives. to say go-forward a supply in in inning on They've where reducing been chain benefits basis? program?

Erik Nordstrom

I Cathy optimizing our If start. optimizing to And not it's leave our something in addition that opportunities to is changed really you bit we I'll can chime life about wording the out, our to see that from network, chain that we productivity may of to a cycle. supply technically just drive point with in. Yes, throughout operationally. our network continuing chain managing out inventory its supply note internally

and digital have is it a stores have model, retailers our Most at unique. look business. You

cycle X We of the of connected. banners our in also The ends Rack. a in lot up and starts the and it product it Nordstrom life have are banners, the banner, or

placement its managing that of make we opportunities for better in lot cycle. pricing choices to through value in to product and inventory, see us life So entire of there's gain a and

would supply business, have So chain. across narrow productivity. to we supply see in sides I strong operational supply the team we -- a drive the really leveraging whole the of chain, say opportunities really chain beyond them our continued leveraging laws of by And

Operator

it of closing remarks. turn We that, I'll our with for session. end And question-and-answer the have reached back to Jamie Duies

James Duies

in Thank slide interest A you will again with and remarks, available the your be call. presentation replay, Nordstrom. website. X on for joining for our today's along for Thanks year prepared

Operator

This teleconference. concludes today's

disconnect participation. lines your for this may you at time. your You Thank

Nordstrom (JWN) 5 Mar 242024 Q4 Earnings call transcript