Nordstrom (JWN) 26 Nov 242025 Q3 Earnings call transcript

Greetings, and welcome to the Nordstrom Third Quarter 2024 Earnings Conference Call. [Operator Instructions] And 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. Thank you.

begin. may You

thank and joining us. Good you afternoon, for

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

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

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

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

company's committee I regarding of presented might any avenues the receipt to be X. such As want announcements family to the of exploration formation the proposal company the to of by special value, take private, members acknowledge to of of and prior Directors' September begin, a on evaluate enhance potential the Board Nordstrom the that we proposal shareholder

call this will during be matter speaking our We to not this or topic on commenting today.

Erik. now the over call I'll turn to

and and environment. afternoon, with discuss retail Jamie, priorities third quarter against some Thanks the made current us for performance comments the progress joining finish I'll you, Thank good X our and start everyone. on today. with our we have

with of and sales delivered Both share growth sales, net encouraged of with enabling in expansion efforts per sales selection increase our comparable solid $X.XX. X% in We're for newness growth. brands fourth consecutive and quarter, digital quarter. third the to them, total X%. We Nordstrom sustained comparable of business delivered Nordstrom billion, company over that experience sales $X.X Rack positive net customer to the enhance margin its driving and base. most over results Customers momentum our our along reaching growth with In earnings customer the continue net and to matter that to resonate, our responded growth particularly online the sales an

our the for continue to Nordstrom optimization, is make in the banner of the the on year depth momentum Rack. Moving A a results. of we brands banner merchandise our across stores greater the priorities Nordstrom drive quarter. progress Driving our our largest of growth, customers' on favorite building during not and selection curated key growth third fleet to driving in and with and strategy, our helped just part operational of X

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who our Our commitment and what sale. and this greeting, the with completing customer customers to the to initial providing good very room, serving to of are service shop us, teams is, every take and care each of at taking the view on fitting define a customers point We us. our focused not from assistance seriously

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items the as well the sales third improvements the to discovery our nordstrom.com, by and especially search net under of At was app in growth our supported on assortment, in our quarter as functionality price. and $XXX in site in enhancements

customers. continuing to sellers third to offering our which a We to forward look and XXXX to quarter, in wide continue the selection now over Marketplace beyond. our this business grow has business in We scale XXX

optimization. operational priority this year is for Another key

customer speed, doorsteps orders efficiently and experience team on increasing our to as chain customers We our progress moving freshness. relevance reducing have they operating the outcome. which our product to well our desire know quickly Given provide has as supply our and can customers' network by speed improve the expanded to their through financial expenses, getting made focus

increasing items in process, a quarter. we the supported into in the less new For flow, speed recently, positioned staffing well into fulfillment our product's an capacity. XX% improvement full sellable inventory price opening delivery get the time, faster store the Rack shipping in overall efforts condition team's customer of Throughout in they mean have inspect over have third and inventory back and the that of Returns exposure. the can of terms us chain holiday drove supply that items example, and returns faster come in More also year, our heading in successfully.

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We total our stores per with to consistent XX, also opened QX, new during XX plans the XX full bringing is which year to XX Racks to new year. open

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orders our fulfillment Towards digital the Rack country. store the quarter, stores of end around over the for Rack in of we XXX launched

towards our operations of fleet of integrity us the stores. Rack that optimizing expanding inventory our our to enabling improve prior work entire to are of to part to efforts store Our

these customers, allows third up We're same opportunity their up have the to location. services and excited pick excited Rack quarter. with time online to are same in our in expand those items nordstromrack.com purchase about sales also and the XXX-plus of We're pleased stores new nearest better stores shoppers in and day first online Rack early to serve at for them and the results margins. select This pick buy launched drive ever the

focused the exceptional holiday important the our festive to budget, stores on provides experience, digital Across events, with fourth Looking quarter both in with us gifts serve are one an and significant experience us every at opportunity ahead, customers. for the executing online. convenient teams shopping enhanced for and services everyone our is a an and company,

While we well in season, excited the trends the decline sales of was holiday are towards for and October. prepared noticeable a end about there

moment, of thank hard are customers advance their hear in from guidance, We're everyone full a holiday slowdown about updating our and In season, holiday. this time. you'll busy season during which Cathy this happy we excited company a taking wish to of consideration. the and year As takes across I the care our want for our work teams into the

it turn now I'll over Pete. to

good will our performance, today and inventory we holiday. focus on of afternoon, have what Thank for some you, My remarks Erik, merchandise position and highlights everyone. planned

assortment year, all brands stores. ones and shopping, styles. our We we've to their create ones, enabling out the about and curating that edited best discovery which amplify choices a why is customers looks our a lot selection it of in comes merchandising the is of some when our of order best customers. know view brands new that to we an of and our This favorite brands appeal of as well In offer in to have as to point focus emerging a new stores,

strategies. more apparel, that we business, categories with the shoes aim choices. women's From digital on total teams encouraged more were apparel. are occasions We're top-performing our on men's third perspective, our a to customers in more these quarter well both In executing company serve the active, merchandising of and

brands In I'll all leading our quarter, and growth this at the stores, in of cover banner, focused banners. depth each Vince mid-teens helped In on third across category. performance such first selection we've favorite customers' Veronica merchandise our our in our been apparel particularly as this women's and Beard brands Nordstrom in drive building year.

and a as banner. continued Relevant by our favorites top category as run offerings its Running, On of includes and shoes, brand low Nordstrom at teens HOKA impressive customers' some such growth, which Active, apparel drove Vuori. led our

The is category and an one company's history, for shoes it in third us, given well our quarter. the performed important

Room growth each brands contributors highlights of unique month. the of Shoes new campaign, favorite and inventory was to our which Make certain with our for customers' One the

shoes strength increases brands, by in Vince. The notable fueled third Stuart including was Beard quarter and women's Weitzman, Veronica from sales

in rounds women's, have apparel selection more across Similar third dress we quarter. quarter, important our performers increased driven Men's and apparel, In fleet of third men's assortments another growth top our providing consistent category by our in out efforts for styles. on the focused contemporary to us, was and the stores. wear

double-digit in At the And QX men's largest by the double-digit at active third quarter. and driven resonated premium Rack, rounding From casual growth, dresses the great a growth. its shoes, top the out in great women's strong brands line with our top categories in apparel, category sportswear The was by strategy prices apparel, which third gain. merchandise sneakers. volume drove performers led in customers driving perspective, active quarter, shoes. is In denim were of sustained the offering

I'd like private some at to which comments also about our make are brands, banners. both available Nordstrom

with continue in performers, the brands growth Edit of Nordstrom, private Open drive sales recognize were style to strong to quality, customer value and and our offering. our Zella and response pleased quarter, In be We performance. third the as double-digit the helping of customers

of that to as was categories and our country. the some Inventory year-over-year in sales. X% the partially inventory in quarter grew some by on X% which driven slower the were such sweaters QX, parts versus Moving third at position in outerwear of growth end seasonal boots,

needed available the clearance highly year new aged to added with are stores customer growth Nordstrom than consists penetrated XX,XXX inventory a and is to Rack, nordstromrack.com, as the the also over is where we've the yet as well year, inventory to lower the inventories inventory selection At our best our increased and banner, an best-performing site. Driving At the last our over-indexed ramp versus brands. choices up of brands ago. on Rack higher

than inventory the about content continue feel higher we our of inventory. we our good was slightly the While prefer, third in growth to quarter

that both and well-rounded planned in inspiration across and Turning assortment easy we're holiday at launched fourth XXXX all items to the highlights relevance year, focused opportunities holiday shopping have of for we're dressing. a our season points. the about blends ahead few what price we quarter. and catalog the us for fun, holiday and that recently customers' our of banners This on a holiday, We prioritizing the gifting making lie excited with

we're and for item In fragrances momentum selection. have are price our luxury sweaters the on of great brands focused points Rack, gifting apparel, destination key to and at curated a At a customers been Nordstrom season, prices. beauty, the great this across a teams categories making area. offer teams selection on have In shop in relevant great holiday this the building invested to

the Rush addition to to of new arrivals the introducing mentioned, the shop. our so in buy Erik for notifying Rack, online, merchandise over Club locations. app exclusive they in shop members, As pick about an XXX can of we're Nordy feature in-store it the up with be We're first Rack making easier them store also newest

brunch to celebrate includes experiences hosting Up throughout providing Santa City holiday shows and We're offering to Santa, talking XXth experts engaging the Days, unveiling season. and the We're The fun flagship holiday Holiday which across Letters holiday customers characters events special York Beauty this experiences larger-than-life the experiences from weekend starting inflatable series. And tomorrow, Street, be in-store hosting At and daily events like activation on the one-day-only Blizz will our snow with feature we're store. a Glam our country excited festive holiday with New to to virtual fashion more. store, Bash

you Before for We'll customers I them the for well now providing update to our I'd as comments hard our results. Cathy financial do wishing to an and to thanking go turn like in year that Erik's happy teams service our they work all as of over echo it on holidays. all to Cathy,

then joining and by outlook thank Thanks, covering with allocation priorities. capital close Pete, results, third discuss quarter our all and I'll you us. for our our begin

third sales EBIT quarter, results sales In one by X.X% growth the quarter, we both the as positive Total with again a company had as quarter day net solid negative third in XXX versus in increased timing last The year, expansion. net driven at well results with delivered in and margin basis this points. sales of the approximately shift third on X days of net falling the Sale, banners. impact Anniversary year

a in of XXX realigned net sales, of approximately X.X% the is mainly with difference net basis due in increased the GMV to use reflected sales negative for particular channels. quarter. which comparable calendar point the Sale, from impact sales. which sales increased the the grew Anniversary banner third strength is Comparable comparable sales and X%. while both X% eliminates in X.X%, timing positive increased comps Nordstrom in The banners digital

of Nordstrom improvement. X.X% total the XXX negative comparable Sale grew consecutive The of Rack with XX% representing sales quarter sales impact approximately sequential XX.X%, sixth Digital sales points. Anniversary in X.X%. quarter. timing QX, shift net the digital on of increasing sales of increased a sales sales during Digital had represented the basis

XX Gross regular strong profit sales net year as X.X% versus basis inventory sales. increased price a points Ending to expanded primarily percentage on of XX.X%, ago. a

inventory of want. than is we As is good, the Pete slightly noted, quality higher level our the although

accelerated depreciation, across on and general the Selling, year-ago depreciation offset a SG&A by to percentage costs quarter. higher charge to the of increased variable million technology a labor costs excluding in that business. due points were expenses partially after XX.X% to with leverage decreased and in in technology as primarily accelerated and of XX.X%. expenses, sales XX sales higher administrative basis improvements $XX net This the XX.X% was compared related

to XX the quarter. the points ago a than wind-down tax than Canadian year-over-year EBIT expanded X.X%, was year's the pretax in of earnings XX.X% XX.X% benefited the Last quarter. tax the in year Our in income expense of million more increase from driven higher or EBIT of by recorded our dollars Income margin third basis XX% $XX operations.

expansion $X.XX is EPS quarter on higher as sales of well $X.XX, Third driven of largely leverage year's the to favorable as margin. gross our last by

under liquidity, third with the ended cash. billion We million including quarter in in $X.X available just $XXX

solid. sheet remains and position balance Our financial

environment. results commentary our the offer moving additional quarter I'd third Before to our current to and outlook, like some on

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

partially year. consistent with as revenues the modestly by card continuing credit all trend by of was driven declined higher The was we've percentage total higher experienced our that last decline Our expectations. the balances offset losses, a versus portfolio. year, of revenue within QX This

Turning to outlook the year. the current for environment and our

While to pleased we remains external our uncertain. with be environment continue results, year-to-date the

softness As Erik sales mentioned October. did started in experience around we earlier, that of end the

also We net this fourth week reminder, XXrd year. XXX a days X year. points as by holiday shorter season benefited a sales the have quarter And basis by last

When of considering is with prudent the full puts takes appropriately approximately believe realize our our annual the that and EBIT in net the appreciating about cautious quarter, we and XX% fourth typically remain XX% year's we outlook. it and of sales to

are and for increasing we outlook comparable modestly the updating year. revenue and such, for As our sales

range Our versus X% approximately includes to updated of which guidance XX XXXX. includes full year week revenue now flat company in from of in headwind of comparable We XXXX growth XXXX's results. to total XXX points expect the an XXrd sales of weeks in a X%, basis in increase the X%

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

profitability. to Turning

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

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

points expect As XX a expense a percentage approximating the depreciation as the technology of fourth charges to reminder, net quarter to sales related mentioned. reported we our we accelerated to in continue basis SG&A

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

expanding across customers wishing to holiday and also the comments driving to organization dedication priorities are Erik echo thanking and focus our In the I encouraged as like with that their strength closing, well customers, top season. line area resonating teams serving commitment as and for happy we our would Pete's margins. everyone are and a

we thank are you your for for We interest Jamie, Nordstrom. in questions. ready

Cathy. you, Thank

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

the from line And Instructions] of Roach [Operator Sachs. Goldman the with question Brooke first comes

you How in to saw the you health Erik, speak the can sales banner of quarter-to-date? been slowdown October? consumer that performing late by drivers of trends the you elaborate today? November Nordstrom holiday the have on Can

let me both We about across spend across quarter our our yes, We first. for third banners income the gains saw improved saw income customers talk within and cohorts. across higher Brooke, health cohorts, income good all group. healthiest

would we that pull but there, As really far to as of is thing in a the just the decline QX prudent we slowdown, trend a information of It's don't quarter, the what lot that on too and saw, we early that. have couple to apart. into share weeks be a thought which

as ahead, out there you the a most then any look margin multiyear round you do into be as expansion? Cathy, as EBIT move And considering we important you follow-up, XXXX? Great. puts and takes or XXXX see drivers should as of what Are

foremost, always the and contributor year. best is for EBIT expansion, so start going this first Brooke, a to margin the good off top we're line to be

north which biggest in in to If That's future. growth, margin is our we're to think, line of to year-to-date great. X% be the top continuing expand EBIT you going contributor

are to opportunities gain investments the invest As want are make in start retailer, there, we for on the an going move moved work benefits past be have expansion. to of we've EBIT biggest We important do as that of we got we being chain we omnichannel namely to a and well to to little moved as sure well, shared -- technology. Those sure those we've as supply bit but clearly of couple that as our that continue make to areas forward. a

for all-time we're at going lastly, that substantially down. highs. quarter, what to really have it then with pleased need I'll term, just we've remains back come to Long mention seen. We're we to margins, order to in get And each us shrink expanded because

With year, before, to all of making expansion. the we've starting as X investments those see been I there. of levels. kind some we're EBIT we've at we're progress put this high margin into shared historically But things

is Next Simeon from Markets. with Siegel Capital BMO

ongoing the to count expanding really Rack about So hear growth. customer Great well. as great

at you new would customer anyone customers Nordstrom could characterize quick about at just to you the I of new the just curious, customers company just pivoting versus versus context Just per color receivable the way what from if could how or further Cathy, share think banner? any growth? then on spend or And higher follow up, growth then percent maybe new to customer And Rack? Rack any

So I'll in. and I'll chime chance a start, give you to

look is We those metrics have growth. benefiting good customer across trips stores. growth source having as new across know that, count from having is banners get Rack Rack from get -- health having to our good. they acquisition. It customer our us both of new We're both be new to stores We're migration certainly customer and biggest both purchase continues we and customers channels. banners.

So looking really customer health is good.

And trips on metrics we receivables Simeon, watch. customer, as trips great the would add I'm per we on particular? question and which are then, -- your that customer's all to shared, only continue sorry, And positive thing other momentum saw is did in in to I we was what

grew quicker I they think than typical. maybe bit like looked it little a

there if color? there's any any So just or context

out in particular. Yes. Nothing stands

Cowen. And from next is Oliver TD Chen

-- things full growth, see thoughts lot to like might and improvement? sales Cathy, what sounds opportunities to contrast are model inventory a ahead, on execution product promotions inventory for and Rack growth? and you we great. the are merchandise relative for execution, working and guidance on which the include you is are category finally, margins? your you line Pete well, of as And what we product Erik, it compare How then relative Also, does as how look

we saw then margin remarks. talk strength simple bit. but I execution the lot the dish start assortment is materials one. can And making. little and think, a keep little the actually We're with pretty banner we our there. I'll maybe about I shared good -- bit We in really merch maybe price -- with in there's just we I'll in inventory, the then think, reg a off I'll question, sell-through, a Oliver, excited by Pete there. the progress that, a and can

it versus the I it of to and inventory On that We sales have I'll inventory over start I'll mean with That be just wanted we inventory little would sales, to and/or turn Erik. or We a always then higher rate a than can of positive growth. like strive start the now. have right is balanced one, sales inventory. to to maybe spread there. consistent over with then Pete

We're newness clean guys. spring you coming sure quarter. with working come into in that the we That's we important year. as shared of really bring that next have out as that make to We we're

that growth inventory support see with largely we banner, consistent The did quarter. last to is Rack our

always about think the openings, we support the will as additional store we inventory. with new So that

count to We some that, which as want drive support with obviously, have inventory that its to success. choice increased of helping the But well. for we rack.com, is

lastly, then good. say I And is the would quality inventory

So the really watch staying and healthy aging we continue are a quality and that to there. sure in the we make good place of the inventory and

holidays, All and inventory for or over the it we of assortment have the next about execution. X.X Pete I'll months to that turn for excited say we're so. would

in performing we strategies Rack stores. of trimmed the assortment Actually, of brands well. important bit to in a been there, to apply fund been if it. our there's in a seem tail in And there's the that some pretty the there's worked brands. we while of nuance tail most Nordstorm on obvious, similar more that's the top long that a one version long that of a the in our consistent have help the the do of Yes. categories try they're job how merchandise of into a do kind we're And version terms investing times between full-line better but And that's played we've at better not matter to to and of our out banner may That it's And has Rack and theme how darn banner. most.

in been bit the should another you've the those brands. across out standing that would our the Hopefully, I merchandising, that's brands consistently what also And be good performance have we're a signing, to banners able thing see is way our label, we've that we is instances both to been the there. which customers. been That's us, market double-digit able solid the attractive on price for layer not own points increases do points places. be may oftentimes as both product we're are price both in best more, us, lower available been really are top than in you What you. if and good carry in in seeing young more stores, to to in say

been a too. good that's So thing,

And also, but of thing at strategy important cognizant that is choice then customer. it for super the the And don't last we that we is I know count totally important is say this online building online certainly different assortments -- it's and stores, than that would is, have we're the for nailed, it. that's

And well. as working so that on we're

last us, So been off would paying it's the work in of has the the a a what in strategy. your year of continue confidence that kind I us guess to over for given I doing been say, And the future. that it's you'll we've I us. to more is long that of see for think, answer And question, same lot

the And Dana next Telsey Advisory Group. Telsey is from

and line? framework of for puts on How to and this structure. how do you about the branded the being the takes thinking whether freight thinking about certainly activation how as it's the margin top categories the that are on you see the about you And or at Rack, in Obviously, store. results year any just with BOPUS Given in versus newness the York the fourth New that XXXX, you lastly, year? pricing improvement the going the last seen, you've for in forward, levels rates think categories? And additive quarter are

say healthy I Dana, the year. most when of categories, our starts it's is brands. about is But toe, about been business this following been that of apparel. would in the categories, head thing the in part has again, to women's that, that And relation thought with and women's the women's to I kind think really you has long do biggest we've really I us mean it's apparel think it Pete. a with the lever to time. you've --

And been hasn't that think in that, share years. up some market we've know several You last we the probably there. the given case

So about relative real been there concerted what you. have constructing assortments a effort or being price our thoughtful to and there's category

unseasonably late source say I'd just toughest time, the somewhat start fall. been to the do has not to warm to categories, And first but got we're winter this, probably with say the a to the issue, of relative we the that's And as the driver, time that's weather as year. you've bit But start in well slow of know, cold would a a you on this change. categories. picked big weather seen up the

So And making that our key eye that's Cathy well, what we back inventories goes to about, doing on keep to are sure that. with our talked somewhat it in line the demand.

of to and so that to well as value. there keep be promotional pricing And so with we're ourselves top on effort the a lot of competitive clean there's

the margin holistically think I and just, as think, I'll to we're then way but I it. the year talk takes. guidance, about about would Obviously, giving this not around and your a we XXXX of remainder bit structure puts question little about the think

price various asked in have great back market specifically you our Freight, partners and a with teams done continuing freight to to our First, freight. we be get around have rates. job suppliers -- great the and

continue job to done They've we'll long. all that. So year a manage great

we that would starting as to important know to of for do well. come see we ultimately, a customers the love price, ASPs bit On down. That's little

say And a mix to Nordstrom thing, lower Rack as bit has we're would that. take good a customers we're, going what little of make our foremost, and I too, mix. we'll than see that we'll balance that, to bit sure continue and banner. average on just always a see But try that's into continue portfolio, continue but run we -- so serving first we change to I a a a the to to grow we Rack. And little work price to all point want. of

take that BOPUS together, store and to question. It's XXX to fulfillment out and we've with. I'll go Dana, Rack stores BOPUS the rolled really start

to up online. that's being had both to be impact those it's good of is in investment paramount. that, enabler seen for the able services importantly, store is a It's banner capabilities better experience. those For both our to customer have for Nordstrom inventory really obviously open in of inventory, big most margin, RFID customer our sales, And multiyear a We us and of years. it's the inventory, shopping a accuracy customers, We've that. for that number

twos, times, items. able lot of And there's convenient a down get those that's be of to for -- clearance. in and To shopping twosies and many that's more particularly clearance customers, to it of way And of you lot a those off-price, to onesies a ones items. do online those shop

to offer our sales. big us and margin help will deal. is, online inventory that help up And It to So serve will allow our customers. think, more will it a we

Morgan And next Stanley. with is Straton Alex

categories months unpack any Or or you secondly, little couple but quarter fourth think, it's you Just a changed on if compared spoke for One view primarily seems I could how your me. to negative, that sales, you is that more It elaborate few ago. certain has hoped. when Is little on And on they're certain a just we little like for bit banners? a noted the can bit is there than in us? levels, more way that. you then a just concentrated inventory in bit higher a

big the all we at as just our of year-to-date prudent profits we think Alex, slowdown best with take mentioned, the as the a start XX% the we've it's And part more But and about almost we're the I'll pleased banners both of QX of cautious seen business and with Erik a of across so is saw the business, XX% with given strength you little performance, there. to in in in starting continued outlook. bit it's first, really QX, late QX, to our retail. know, sales. October, regards

So want us. holiday. we prudently front a There's cautious think I just the in about be to way lot still of the

as cold would out for And and categories. that? weather little inventory was no a I warm Pete, support know unseasonably is I anything always And say, And little it good the it's add a bit. I It's then said, on I you'd the then, secret to that the The don't levels, if news then cold that weather call Rack has business. to would weather that helps heavier, turned categories. bit,

end of had we back time, we're improved, aging as there's of not that's mean It's And to boots, we where I certain season. the that. inventory, that which of weeks be it selling thing. a be. think categories, And I for that's claw going if handful quantity any sweaters. -- the the and with look the has at best do risk think Cathy to trying and to so I sheer healthy our of the good and to really is if suppressed right, where at just remainder that's right. really it's And we it's No, is outerwear the can to of going probably

Next is Tracy Kogan with Citigroup.

on question your a had I gross margin.

overall looking then looking I other. on the if think gross it better full-price wondering consistent And pretty you if And you're just quarter? the led across really gross margin, divisions in for environment versus And by said was for was you was what your that the margin? one this driven or how both selling. promotional was at of quarter terms expectations fourth the are and at above I

Yes.

the have. year-over-year. we we see that's should improvement obviously, and margin some guidance gross we we'll basis on what the was QX, but called versus but by see to expecting for are was reg profit, consistent XX year-over-year, gross with noted stronger good out QX, the given to call I a guidance you have then year-over-year bit it's that the not we've little price of driven expect, banner really of points Still, that anything particular. some And in improvement Nordstrom strength in or selling. would in the Nothing holding So and out -- banner,

And what's it's your view as for of the holiday? promotional environment currently, up shaping

QX is always for promotional retailers.

I think is. but it's not, like we'd that pretend to it

far, And our lived up expectations. so it's to

And Blake Anderson next is with Jefferies.

on this, if missed Rack. the I And a question of have just might I on banners. but comment to wanted could see So at then you each traffic

show customers. are your how new stores, showing up I was current previous Rack seeing how and wasn't So new these of up Just stores, curious customers over they any that your curious. shopping are Rack maybe customers categories Rack at incremental across The you at versus type are stores? these customers the

flat traffic, transactions pleased regard well. to banners with was traffic traffic continued across then really With in then customers earlier, Pete And the is start about both I as I'll the across as Erik obviously, help. and can think, and growth up and Erik, And Conversion shared banners. with the well. as at Rack...

chiming Erik, in. It's

X really an that the In really our or People customers person, in a of it's our business, differences will especially business. One X, XX real of convenience matters. much drive hunt from off-price big area. is about off-price, geographic bigger like our in hour flagship And stores. minutes, can serving treasure Nordstrom banners in vital draw stores

us there's opportunity lot some in geographies So stores in geographies. where serve in filling have new and for we customers just or of to a

I price those that brands similar unique. brands, Nordstrom, more And lead brands. would price off-price existing some that we is I to off-price the customers were offer leaned in space with into retailers, been. price particular, really depth to first. of important. have. lead And these the say better these others Nordstrom and we've business is would certainly, is customers have we real pretty in I and The the by with contrast followed of brands our brand think And brands, customers brand, the the with say, our other quickly, we has associate

off-price brands little And stores. -- resonate so really players. open those our But of new average customers the is price some we it's higher point as with than big a

Grom Chuck Haskett. is next of Gordon And

longer I have one term. near-term question, one

few any from I stores? about? to the heard it we've other term, across geographic hoping full-line the is you could what Is was you question a near banners, both double guess lot click here the there counter that And is, weeks. any I It's the retailers. Rack in talk and of the On categories all just could the past on slowdown concentrations,

the growth and, thinking we where model. far about that ultimately, how store like of relative the on prospects XX we peers, about for how the to think off-price we you're the the sounds about is are to longer-term thinking XX some then be for opportunity Rack? How the do should Rack, And under-penetrated so stores it Obviously, can grow?

a a couple of in, it's deep slowing weeks But I'd trends. on it's that. just across general slowdown, businesses to say so of been QX in our go the all tough again, saw that we the Chuck,

in up slowdown saw of year, I saw for where As doesn't October. we week QX across of this good last our trends business challenging. would you noisy. all planning with noisy very sales One it a and so a is with QX, really days that the and starting the had is reasons. period few obvious results, fewer say our It's we calendar businesses Thanksgiving in match is a between is X Christmas last

of seen There's impact, for to Pete no noise Plenty There's be distracted of there. customers that as the some weather some we've doubt mentioned. appear time election that.

and We there. a great position, there's exited so any QX. the feel assortment. we've So we come the It's obviously, But is you haven't slowdown. us. really deliver majority of plenty And to it's add our we to all gifting our that in results really conclusions great holiday on together, about little than of our just seen season a that. far, time And slower plans, holiday front inventory of

Rack little stores Chuck, maybe on a point. answer your to I'll bit

each to for pretty purposes. is modeling into We year next but in stores XX assumption, think, year, a haven't necessarily guided I XX good

thing exactly stores store. a continue to some we see to Rack put opportunity said, growth would The you as other have the in on shop customers that we are prospects, ample where still love longer-term Rack areas under-penetrated. We to new

do continued we our opportunities still see amount a growth. of fair for So

our question from Hutchinson last of with comes Lorraine And Bank America.

on Melanie is for Lorraine. This

at you on out the get SG&A what line? over As we look next leverage few will comp the years,

just of It's continued with the growth, top stores. expansion to mixture, for help really a new is Rack the Melanie. The going obviously, line growth

X% you -- get a have going to X so, be X banner, Nordstrom imagine need to the more world, to you're type to probably or X% X to On if leverage. to inflation we like able comps

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

teleconference. This today's concludes

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