Nordstrom (JWN) 27 Aug 242025 Q2 Earnings call transcript

Greetings and welcome to the Nordstrom Second Quarter 2024 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. Jamie?

Good afternoon, and thank you for joining us today.

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

slide so may refer forward-looking discussion safe statements, Our to language. include the with our harbor please

Erik call Financial Nordstrom, the Chief Chief Executive who company's and discuss will provide second Participating President; are Officer; Cathy performance. and in Nordstrom, today's update quarter Smith, Officer, Pete a business

an discussing when Reconciliations referring our results basis we margin outlook, EBIT be is on directly to comparable share. that and to GAAP be will and them XXXX QX available measures release, note our earnings adjusted most per which EBIT, our for on can Please earnings in press found the website.

committee acknowledge the Nordstrom and announcement April proposal potential evaluate to and to carefully the speaking call We in that formation received exploration is it proposal consider any of value and of to this be As will company's Board Erik on the to Directors' an a presented we of Pete enhance shareholder today. company of any private. evaluate to that be might during avenues it be best take and have I XX update and not may all whether do interest Nordstrom will shareholders. not share topic of the committee begin, our special special want by to The

call Erik. over the turn to now I'll

of We business and begin to second comparable Nordstrom responded the and solid afternoon, Rack, of expanded At digital per favorite the good $X.X momentum our continued grew results margins. and Jamie, you sales performance. of positively sales their joining and with net $X.XX. We earnings growth sales with X%. today. and you, The Thank sales our as brands. delivered net as in customers net well newness billion both quarter, share with Thank for us second quarter everyone. I'll in

delivered and throughout the Our executed a quarter Sale. successful teams well Anniversary

pleased our with are efforts that are resonating customers. We

of Driving made the upon is Nordstrom banner second we During focus. optimizing growth, quarter, the of priorities operations building the progress our our area momentum Rack. at banner growth X driving key a Nordstrom key on and

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at success progress in of drive the have the quarter. lot second teams made in Our area, helped both a banners this which

At Sale. Anniversary the flows Nordstrom price consistent the regular during drove including sales, banner,

faster, processed fresh single-digit also the merchandise volume quarter, even channels. which contributed throughout all sales its the the in of with of inbound the to a And returns enabling Rack growth. freshness merchandise high flow had and steady We Anniversary Sale,

progress experience, We to enables to to looking have fulfill the new and customers implementing only reduce RFID does accuracy the also our the this technology locations. technology us of inventory provide accuracy insights made on are data, inventory shrink, flow product for. our items improve allowing helping real-time us across Not enhances faster customer us our with RFID improve inventory.

operations leased future the cease a pandemic, networks During in the avoiding the build-out reflected an We in asset second our recovered omnichannel and that while that network for chain quarter, have charge over customers Pacific we found strategic planning that taken intended impairment challenges can we during Coast build the West our cost the is from improved Logistics we to additional we've existing few our supply serve and use years. from Therefore, supply efficiently out decision the of more facility. have began supply center chain the chain made results. last to Northwest.

our to Rack. our to on priority now build Turning the momentum at

delivered banner's at nordstromrack.com, shop in year that off-price solid quarter, Rack return During new to season. stores The retail, industry-leading a year-to-date Financial year bringing great at banner. ahead capabilities continue focus last on Rack our great the of total opened the offering to opened they is combined expanded stores, well, strong built were QX. enabling are our results. open Rack business planning more Rack while Rack drove merchandise We're of to customers. brands X rates in-stock want. differentiator the delivering customers be new second stores performing results the on investment digital prices results refined and a in XX to strong XX. how we with We've this and An holiday when at new a which attracting digital

quarter, In and grew second heading. margins. with direction In summary, we sales are the our we pleased expanded the results and are quarter we

our Anniversary with along This progress, progress provide successful our we a priorities. us key executed full year results, our confidence teams in Our Sale with on made and guidance.

with to it And turn I'll that, over Pete.

Sale, my in offer I'll the commentary on Erik, health. touch focus and some and Anniversary performance inventory our Thank good remarks on quarter second our category everyone. afternoon, on you,

Sale brands, brand-new meaningful Anniversary from unique a rewards down our engages best for a with who to marked is forward best event year. the that time. product sale each customers and is look event our Our limited customers, to the The

by we We from the are stories always customers year. every humbled hear

loyal generations of Icon the that participation around Anniversary Ambassador our We their with and of XX% the sale in family an had event, sale. most customers, by including Club and Nordstrom have by were especially shopping from continued beauty Nordy the activities fashion make driven to about great and learned year, private to includes provided Sale, the we most summer category, double-digit planning apparel, annual show shoppers members Sales it. This Anniversary growth. newness customers, sales matter event, which Growth support that in active anniversary strength registering our shoes brands our throughout fall to success, the the brands. and our

Erik private mentioned, in Nordstrom are women's our As brands apparel. gaining especially traction,

Nordstrom on mid-single-digit volume most and the Since Nordstrom and refresh Our growth event. brand it customer of our site, the X brands the sentiment the Sale, impressively. our Anniversary reviewed with during the brand, the Zella namesake top of as about private brands become has it's delivered grown

offers finding balance high selection. Customers of value great and price style. that the our improve points the Our private of is merchandise quality helped are combination a and brands in

have we still private encouraged our are we're the way Although a making. go, by progress to brands

year. is not drove to Club do rolled customers, Nordstrom tripled Our and brands, and so compelling new one private to engaging which engage stores to customers, our purchase in-store of last place to Anniversary as engage exclusive through throughout an in-store strive with fun our We teams sale. a Customers our attendance teams year, than events. compared those Nordy events XXX nearly trips out only over environment. members. our notable From events, offers a the us event responded way last to and trunk roughly hosted to more to events Sale serve shows incremental but events provides XXX our and interesting, shopping XX% expanded we special shop, and online with positively year, opportunity and refreshed This make featuring

growing store. focus continue our City on New York We to

obvious with It advance of In the us. York in as complementary Year-to-date, shopping a Icon food New is to store that Sale, store flagship fastest enjoy important complete drink place Anniversary Lounge private enhance top is Club can our members our where to the in-store is opened all growing. sales a amongst Nordy and dedicated our it our in reasons, experience, our their lounge ever experience. For services tier we as fleet and well first store. highest our

quarter. to performance second the Turning category in

active increasing strong. category In double key The as high styles, brands the Sept in and beauty Our the both sustained sixth for women's banners were New active, apparel, our top-performing across by Sales On, apparel continued women's include by quarter. This and consecutive Vuori. performer supported kids. quarter, Active second growth categories Balance top with brands was sales that growth by were with such find banner, degree in driver growth At was contemporary a Nordstrom customers quarter, and with in driven stores. in digits. a strength overlap brands our Rack, the People at knit and second notable the is the the dresses Nordstrom growth of Free tops. à Vince, well-known of Cinq the

which brands, Rack notable to We in drove the for the women's the on growth quarter. these in selection focus apparel second continue Rack's

brands us. and is Anniversary Its we've a its Overall, and second by customer gear of The our margin drive regular a the helped at for growth an in fragrances The strollers for this into of the us and to in business been Baby top to banners. as well. was Sale. increase curated responded leaned hair assortment, QX has has beauty interest direct sizable Nuna. a sales kids contributor second as with more growth expansion to to quarter. category like sales both and product, reflection great become solid well continued essentials category which type in in care car customers throughout the price sustained performer The of seats a supported momentum strength growth be quarter

digital to inventory in our invested in our on as nordstromrack.com. inventory In increase stores quarters the Moving in we health. primarily new inventory for support exceeded our quarter, our existing several Rack channel, our growth our to first and stores, the second Rack time sales

While clearance content in with typically was our inventory increase decline spread higher at in than the newness sales expect closed the the we of like, we good banners. improve. we commensurate and feel In to We our aged do a inventory the future, inventory. to and growth an quarter about both

pleased Erik's I'd second with the are heading we that to confident right our closing, and echo In comments. results like in We're quarter direction.

And turn it Cathy to with to over our financial that, results outlook. discuss I'll and

all by for both with shift basis quarter. you company in thank increased year, delivered banners. quarter, with benefited joining banners second us And positive results, allocation our the with channels, and Anniversary day begin strength the year outlook last GMV Thanks, third second discuss days X increased comps quarter EBIT and in expansion. well today. strength sales our quarter, approximately timing growth results, driven we XXX margin and quarter in the sales X particular by digital net both The capital X.X% increased priorities. in Pete. In the in then with falling the in points. of Comparable versus X.X%, Sale, and in Total this I'll by net covering close sales X.X% solid second net second as as our sales

expanded The sales XXX fifth XX% On Nordstrom the second during Digital on sales represented the approximately impact X.X%, banner approximately X.X%. Sale quarter. basis stack of in net had Sale improvement. basis QX, consecutive with sales sales of comparable Anniversary in quarter total quarter. Gross increased a each sales are of increased shift digital timing sales The Nordstrom the to of of sequential increases. points. comparable X.X% XXX increasing impact X.X% the positive sales Digital net grew increased slight points. and Anniversary in basis, Nordstrom sales on shift basis price X.X% GMV the on net had by a points higher strong positive of timing to ago. as a XX.X% the sales, representing versus net year quarter-over-quarter leverage XXX pleased on Ending banner and inventory profit and sales of a percentage regular a sales sales we Rack see sales X.X% increased X-year shrink. improvement

momentum, XX.X%, Rack Erik quarter XXX that on discussed. As bring the asset to largely is percentage as while gain sales said, supply quality estate excluding to impairment basis we the When line points second and more due XX%, inventory the a increased increased growth of points with demand. good Pete last real charge, sale to year's results sales in supporting SG&A included the chain to million of aim expenses basis expenses of as largely the SG&A inventory a charge net $XX asset. a XX

expanded Our year's earnings XXX the X.X% was EBIT Last second XX.X% certain year tax expense by recorded second benefited to or the ago $XX million basis of quarter. of from tax of income in matters. in the tax margin pretax favorable the higher quarter points quarter. than resolution Income XX.X%

quarter Second of the management. lesser favorable and is share to margin earnings expansion to largely gross a $X.XX, by extent, year's of $X.XX per our last expense driven

$XXX billion liquidity, including We $X.X available million cash. ended the second over in quarter in with

Our balance financial position solid. sheet and remains

I'd to some outlook, offer on like our to second commentary additional moving our results. quarter Before

the of experience improve hold, we increase our grew in top are the expanded customer our as margins. count, quarter, by strength customer and second the evidenced to efforts recorded First, our trips an taking In line. customer

Second, our balances consistent total with a card was last The yield declined last as This expectations, few years on trend as losses, driven and portfolio. higher faced has modestly QX revenues the over budgetary the revenue our the the credit of increased by of higher offset pressures. decline continuing percent partially general consumer was year. by versus

outlook our to the Turning year. for

remains with there and pleased external is uncertain. our left, to half outlook. cautious prudent this the environment with we appreciating are fiscal of is a considering be year lot we puts our the While it takes appropriately still results, believe first and that When

guidance our slightly. year for updating the are We

XXXX's guidance updated increase the from a year basis a of in revenue an X% full in range the to of headwind XXX X%, decline of which results. includes Our includes of approximately XXrd points week

to We continue a to cadence. typical quarterly follow revenue expect

total year As a X of timing quarter sales XXXX, have year. weeks a to of the reminder, XX in in company now days is Anniversary flat in to versus day We Sale, negative points falling this range the expect this basis X the sales shift in in X% in our approximately with XXX of expected versus third of increase quarter impact third a net XXXX. comparable an our XXXX,

included XXrd a week, XXXX comparability. calculate As comparable realigned sales using for our XX-week our fiscal XXXX we a period XXXX

Turning to profitability.

We year full expect margin X.X% of a to range the EBIT X%. in

earnings excluding the for full year share the any the to expect full perspective, approximately effective be now $X.XX tax to continue year. We From our an impact $X.XX we rate of to expect share XX% of in range per results repurchases.

expected Another note regarding reported results.

to quarter, a us transformational we second access This the how During change capabilities, we to made AI the access strategic will enable solutions ability services enhance our faster generative to data leverage decision store analysis and at and change data. improve and and pace.

as result depreciation SG&A expense stop plan net by expect the as as points assets our change of QX QX. the reported well as in a to year, end We complete result, IT the a this and to expected we to accelerate basis percentage will This is sales that approximating of in XX to the of charges using.

allocation cash the to We'll our our of customers ROI unchanged. serve in business shareholders. remain Board Last priorities leverage reduce capital to week, quarterly and cash of projects, a Directors invest high declared dividend better share. per with $X.XX return our Our

to forward focus to margins. line in closing, we that have, your growth We with for both expanding and customers, Nordstrom. Rack. thank the we'll make the I continue banner our and with that we and the look In encouraged top year resonating interest strength you the in this priorities driving Nordstrom are opportunities are progress

Jamie, we ready are for And that, with questions.

Thank you, Cathy.

themselves the with session. and Q&A to now please started we one question one participants, to We'll limit get will move we follow-up. Before Q&A, ask

line question Telsey from Dana Instructions] with Group. the [Operator Telsey of Advisory First comes

the how through reception you thinking And the Sale, the the you are on indicator women's what then gives consumer seeing lastly the you launch any womenswear, year? Anniversary credit, year? As Cathy, that balance there, the that went cadence category did Anniversary for debt levels quarter? how planning private from for with of how also the you're that And good of And of and and to the the Sale are your versus the an balance on saw first brand brands about just differ you health overall? the

anniversary, essentially it's we to mean Pete. plan. regards With were I Dana, on

well there we really cadence the relative new ends And bodes I that but great getting in a you balance in buy anticipation over bit which sales have -- both product people nothing fall, years buying read a that's But think Because marked there's it's us. with now. there sweaters, had categories. specifically, of wear outerwear we do as the up. fall get on one up to we know, fall think thing the of an and has the sales, now, who early the good that for for about I become performance those on

So we're balance. always trying to find that

I you we we brands, don't grow going us because lot think lot while went. which impactful across how private that anniversary success information women's a is confidence categories, I encouraging there gives have in relate But important of again, have With the a were the big been success Anniversary is so So in when Sale forward. we with sales. super it's brands, we've because private about apparel, going business. apparel, regards it's we had a really most that such about part happy women's future a But any category headroom to and to in you lot how of of for talking have strength as to for that super all a we've know, had to

With question. spending saw consumers higher the growth Rack. or -- at to your saw all income last possibly, then good regards stores, customers, we most take in tick year. And X across that improve we to at income but within our the different, of Nordstrom modestly the out of in it's I our I'll Dana, then losses the cohorts shared guidance. insights this losses, parts year that seeing industry expect banner. And and up and we with no the That's, plan consistent that's we on early what credit our see has customer that been think,

unforeseen losses bit. we a seeing tick are nothing up there, credit So that's but little

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

triangulate Pete did inventory on And Erik, little with that price position Which a mentioned sales quite parts nice. inventory the Cathy, now? gross had be you strong of margin, over optimization. regular that the which might and bit was you the you're in operational you How inventoried?

details love in to be would the Just well. so want as the you great It's inventory business for flows place important. there? in to Are on great that continued see positive you Rack continues are that, Do you see headline. and momentum that where comps there? right a progress difficult

are, Oliver, But as of that is at content it's probably With Cathy the most think look I Pete. if helps, where you in our grew some what than sales. inventory faster of is, and in mentioned of We that's the inventory quality those were a little terms clarity. inventory it the what important over point. the levels, think, that bring I

So the most showed opening business, stores this And then think we're I momentum, really rack.com business. the that we Rack particularly the in of up that and your have point that's really solid. Rack to new

this our And year, across banners, our think If forecast pretty over good primarily, look that's Rack it's largely impacts profitability at to good see and sign. Also both forward if Nordstrom. that you is to able both where in have is are going and really the a I would how what there. being last of terms aging look aging you at quantities you we were

want really us we about think And it we're half. some, levels pay doesn't inventory attention any down and pretty anticipating certainly, concerned. second that but particularly bring I it. we to for Obviously, create feel to not for close we're good it So we overhang the

On and we'll as know, up optimization, the on a throw pick you it. I'll ours Oliver, it's been, operational optimization to on Erik year and focus priority And all then continue it of Rack. on to operational

better is saw you merchandise on is team progress. good But that's which in it our enables this our returns sales, that it and banners. us we we'll And drive faster, us. that, making balancing now gets we're roll able continue to merchandise us regular helps hit get regular we're great. seeing experience Our of the again, which we is newness price enhances that And fleet. think benefits of continue the that RFID, customer both for their which insight is increase makes a chain continue orders. with that, network, But starting underneath we -- one the freshness those to customer price customer quarter, that consistent really across flow lastly, and the so to is again, more too we're and I encouraging, out look And -- to experience leverage and process then cost. sales faster, importantly customers thread to fill always which our gives as can to supply the to existing really again best speed in important experience. And It inbound

good across board. just progress So the

Oliver, Erik. is about Rack,we feel results. On this our good

well team that's is And plan. an important new Our growth on for Rack us. vehicle is stores. the executing

And as well we're opportunities the We digital business. pace business at add our comp certainly, stores continue store to as new see currently to the adding.

customers they with brands flow us. newness of Yes, flow. that to find mentioned come You constant from they Rack, associate the

wallet. for a focus leverage It our more us that. The And our of great the bigger on online of is customers brands to a us works bigger with and on get engage retailers to capabilities piece, share more great part ecosystem. many of there. and well, differentiation. there because opportunities feel their There's we So see it's we point digital great to it prices serve continues not about out at off-price really

growth. to on have forward plans and So continue we're delivering our going plans that

will BMO Markets. next with of the Simeon question the line Siegel come And from Capital

gross Sale Anniversary what's impact price from strong margin a sales. Cathy, shift nice the guys margin, in called full timing got XQ? You out

using that depreciation margins not versus that appreciating -- more. to the just Sale data mentioned? new shift to approach on top the of And how you be just about tech color curious costs about us ahead? to going the should of for appreciate and the just gave storing you impact for thinking nonsale about any then gross think revenue to be the commentary we margins and that timing Anniversary So Any you're the

on so great and gross Pete I'm margin, Simeon, good Sale, But negotiating customers. job team new smiling a your around get vendors good our should Anniversary here, comment Yes. impact and in with news is the our we too. does weigh of merchandise for our

I for So have And specific called strong a noted wouldn't sales. out price also anniversary. impact we margin specifically reg

then seeing, So to I called improvement anniversary impacting up, more those I'll favorably answer necessarily sales I specifically for all wants reg think on our in which on prepared share anything We year-over-year margin. anniversary anything impact on add in bit little you're margin. And shrink, to have total, volume, slight margin. Pete gross remarks on price and and just in wouldn't then the then margin, gross special helps out that did margin more of tech if on

On would a the we'll I a no, generally, level or wanting that to always about technology total say, within budget spend think technology, afford. we're

help fit we'll a was envelope forward. call So of going a inside guidance reported we're with out expenses bit our specific The that little to giving.

X quarters. impact can in So a to small the see be you next there's going

Yes, this Pete. is

Just real the thing. anniversary quickly on

it than kind looking if that looking If any through to you're plan, of don't margin, overhang we impacts for have then we it has forward that does more backwards. a don't, going with with that does. according we potentially and If to sell markdowns creates how lot do

about I we As were our right on there plan sell-throughs. mentioned, just with

margins about And our profitability forward. that so good I think impacts we going how feel and

would do you should full expected into quickly -- follow-up what guidance? about gross just What great. on then. really That's EBIT Maybe built gross that the we the think trajectory that? a margin the year How

I there. can Yes, help

expansion in for guidance, our of small amount in of first QX, a full margin all and bit the half, see gross in taking margin the year, change QX between year. included for the full what's So year we'll in but little

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

the the the Rack store? payback to Racks what's to the runway wanted that for you open I stores up of Rack over And time? your hitting follow Have typical a new What's new on the rollout. plan? expect on number

consistent. start, Lorraine, opened darn and our to return and there. stores, We get again, of opportunity in a investment lot of this Rack share add is see chime is high-teens some can Erik. continue and on IRR, I'll color. Cathy we mid- more lots We've to stores and to pretty

We shared year, That's we last we've with intend XX XX more in XX. remarks the opened prepared pretty year. too, that's year-to-date, to consistent so this open

be would that So year. we reasonable same expect forward the seems going it to it in range next

And the next of Stanley. line question comes Alex Straton Morgan with from the

Perfect.

Just follow up to on question. -- inventory on the

you there? second back lot, should contextualize year you can little, worse how increasing excess have And think the that? the a us ago? on a just by than year given a more concentrated. half that does just EPS months of full only Or that some Rack you but I some I mean did X quarter you if by full was guidance, you're the beat intentional, Was build color you that the then outlook said where was that like a into give or holiday,

Rack I'll the opportunistic that, you it is be this. inventory levels. as mostly think I issues want I that. of in timing over most some mean mentioned, is I receiving are about this. This to don't like with we're inventory Pete. when want And to the Rack. really We start there. you're overstate concentrated slightly And there

and buy to the opening. in, have anticipation bring in opportunity stores we of Sometimes it something

whole at think I look picture. paint you that So it really when in a month-by-month doesn't the way,

about about have not coming stores, concerned we on too. in particularly fact stores are concerned being So momentum given over is we've being that Rack we the and new particularly got bit inventory positive and Rack levels rack.com the comp business Rack, but we're moment our always we appreciate in a in lean, this the little growing,

And Alex, I'll take the guidance question.

So question. I appreciate your

back environment obviously, does are on continued the we've to top really We're second got big see being of all line half. with just the half at the as around of thoughtful profits in the the X/X through performance really remain But we're typically year, encouraged, of We the the the retailers. strength a those our and first by that. pleased come and part uncertain, banners. half,

outlook. X So with the and we'll quarters prudent, how we're and a appropriately -- cautious hopefully next see play out. being And our little

And the from of comes with line Haskett. the Chuck Grom next Gordon question

success first any And Rack. Rack? ticket comp specifically the the quarter? X.X% the Curious, thoughts few August, traffic at how the the throughout composition on the Congrats on at of phased weeks comp, the the of

to start. I'm Yes. happy

throughout the there there. toward quarter, the I out Rack out wouldn't pattern generally picked X.X%. X.X% particular. total So the And July, but stronger any say The banner, sales, any quarter end comp then particular in was have was specific I pattern Rack played wouldn't for in

New in had, pretty closures the much difference. X of think, Other the I or stores X balance are there. We of what's than that's it. making largely small that,

Okay.

Just anything ticket on composition? traffic and

across a flat. digital I said. fairly stores what channels, strong basis, were was in both, channels the Traffic on The particular, is would comp have

banners strong. And was is digital the both standout then a for us. particular store New obviously in

much impact of it is little in much quarters guiding ever, a being XX.X%. then gross going particular? the ever. that guess, relative Okay. If just Great. my I and But And on the be number forward, sustainability best of I'm on that XX.X% of the color your across compression How margin, follow-up X would probably any you're the half. driven in how like in one it's curious banners And your by success. back bit there to the sounds it's best that is to helpful. not just particular, the Rack --

there out we'll We the banners for typically Yes. Maybe yet. eventually. get break just don't P&Ls the

in is points year-over-year, or over So well. on banners. That gross though, your shrink basis -- the definitely continuing. that's XXX to is as both reg pleased we're both highs off the shrink volume sales, And about margin total, with our point, in comment, the XXX expansion of historical in strong improvement leveraging the price comment banners, both banners

our for we're recent think point, least a in are it that at those I comments To your history, So seeing. is, high both.

back the we're provided guidance, year. in good of there. cautiously But half the for So we progress our planning as

question The from the next Anderson comes of with Jefferies. line Blake

And performance designer the -- to the there I mentioned price And Rack, the banner sell-through in Nordstrom seeing how back that just then half? how during the was increase that is I broadly. you're on in but on most know you category? for designer positioned full faring more kind particular, on in then And of to you ask comment wanted ask, wanted how inventory is can then quarter? curious was just well? the of as

wondering a comment could if That such assortment price there. as on you guys you was be initiatives think I a bit few you would what I and points. mentioned little more broadening great. did

Pete. is This

well. of rightsizing. a With that And the designer, as and space in growth years, been mean it's I There of you're articulating like certainly, of consistent -- retailers seeing that kind of it's for couple it a now it's we've here while. It's lot challenging. with theme been for a kind feels it other a been was

and It's we're hard has predict numbers, us 'XX was. So that for we're pretty not. if leveled entirely at out 'XX close to or to looking what

see bring. said, next couple Cathy quarters what of As the we'll guess just I

just levels our we've tough that, not -- really collaboration a with a with spot. tried had caught and on our hard what worked of put partners. team we're to ourselves And lot inventory vendor we've advantageous in place So good an in so

report that in challenging to it's other lot still a not relatively space. than So

is This Erik.

merchant banner, a to things For call out. the couple

of and service, focus stores. the lot blocking there Let with taking me have start really a and starts our has a of and It think I tackling team there. customers, great customer with care done

got we've mentioned, just points. seen our loyalty Club, call some stores, there. traction program. good last, the out particularly places to includes Nordy our lot to, interesting Pete of mix for I'd leveraging stores there. as of events And a We've making come balance price our events the That Secondly, merch

-- a having around and manage And well [ authority We a Ams have that. ] need to being we Valentino, job teams from our on brands also them. best with make have we to to start our that broad really to offer everything sure did and good

as had the a quarter. think Cathy business, digital strong business the mentioned, On digital I we over

had out big think price Some particularly of online. to and strong in real That we the was rates been has -- is And count little important fastest-turning of on nordstrom.com. it's focus That of played more part is points a just discovery search the it. balance and rack.com a execution, of helpful. items. a That in-stock again, enhancements our Choice important. always I

our we lastly, have of numbers one a little as did -- mentioned, It's year. still we this been then And ahead launch Marketplace our plan. earlier but of feedback small, the the

got from vendors encouraging. that. that's material more on not feedback good And we've our While qualitatively, yet, also

like our with Marketplace. on So we feel we're track

from William next question the Dylan Blair. line And Carden the of come will with

it. appreciate Really

place as inventory and access from just on of sort that continued set comping back will Or go of in did where sort of you guidance, curious had the be it upside? just source particularly the relates you feel a standpoint could availability forward, be peer more line price would there, kind that flow and with Rack, to there and a point they of like half? a Just in in banner

there. the is definitely Yes, We're this track on Pete. right

we at You've talk of heard the a the these lean brands great better brands that offer And of do. space proof carry lot and that, we that about makes around access We've in off-price the is banner. some Nordstrom the into different great strategy. us prices, in of got point to what premium the confidence more we our

to are merchandise. teams Our connected procure able to well to the be that opportunity

a can't buy merchandise seen keep believe even we we've to at And that going good there, far, every for we day. so least There's stores pursue great new opportunity reason we us there. to add as no out and so

a feel that of doing channel? might industry spot, be things, some out defending of just about you of a Do share Is you're on the trends sort outside beauty we you're that should job calling now. better the as a like of And bucks which side that you think why broader bright in just right that space? in the How kind comparison?

That's again. Pete question. it's a Yes, great

had But it's good. been solid, industry pretty pretty to done low been we've the whole has relative the there, single-digit it's our growth there, well. offer, think I as you're on remarking

looking pretty we the categories. thing do a of to had share to get market thinking serve And customers going market share pay ways relative lot we're our and attention good in space look there products. think business what's for at. because So complacent about new important relative out that with to we We really that to always newness of and on an rest it's we've better I is and and important don't that innovation

] know to don't [ We better, can yes, and send figured got the we we've it. competitive out there do all that signal I it a and raising So market. want it's

And our will come question of last Lejuez Citigroup. from Paul line with the

was accounting, switch anything gross to on then the cost And be there switch? method to quarter? business the say did I the the it, the Curious, second there's if the that don't the just rest outperformed related Anniversary impact what with missed know was performance then quarter from Sale, if during versus like curious second, thinking numerically you any you during that margin if and/or in of in should the switch inventory the I quarter? but And about of third

Paul, the I'll take cost accounting.

Remembering a -- basis points up would year at your a we think back think call Anniversary full purely And about to -- year, said guide finish quarter. And cost from accounting, we we Pete of up that it's will If there's periods. can us is retail question say, went that's if no from and cost accounting driver really are impact particular performance. period to in when as impact our period, I I going there. first we just the the we the was come times. generally, timing the as move it's about of beginning probably Pete I the XX that's move performance out this the a possible would accounting talked It year. I between as On at the of see when the anything. of part there's But would no, that not timing of it, conversation finish to Sale. then just at

I performance? anniversary think your was question

exactly. Yes,

how last like -- the Just Anniversary versus down year Sale or during it period? was up

Yes.

other. plan and the one way It and solid. everything. than or performed It As the with we better we sell-throughs remarkable necessarily and essentially mentioned, it's right on But others. Yes, was categories sales was were some yes, good. the not

talked strength read think was a I stuff. And and lot got on apparel about in of fall we the we there. in newness women's good particular

about that. So we feel good

sell-through and Good good regular too. price Yes. sales year-over-year,

talk you kind we -- of directionally? the of above on hear the I it mean is I it Is rest or know quarter didn't we it plan. below? plan, do your you was could think didn't but

you. having I'm a say time sorry, We're Paul, can that hearing again? you difficult

how rest that period of the Sorry, say versus just curious if could you performed quarter? the

I How Sale obviously, there, sorry, we so that yes. what -- said you is performed, didn't period in out call understood July. the Anniversary Yes,

about And XXX so that on full on the total impacts and versus talked year company. the basis of impact the -- quarter we the for for the full comparison a the year-over-year last year points

out the you good saw we strength, pull in of -- Anniversary across in out, quarter. obviously, of -- July think, strength called because But is I if all you wouldn't do some there I that So months Sale. out have when see they called

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

This conference. concludes today's

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