Nordstrom, Inc. has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations for the fiscal year 2024. Nordstrom, a fashion retailer based in the United States, offers a wide range of apparel, shoes, beauty products, accessories, and home goods for various demographics through its Nordstrom branded stores, online platforms, and clearance stores. The company's strategic focus in 2024 was on driving growth, operational optimization, and expanding its Nordstrom Rack business.
In 2024, Nordstrom reported net earnings of $294 million, equivalent to 2.0% of net sales, with adjusted EBIT of $593 million or 4.1% of net sales. Total company net sales increased by 2.4% compared to 2023, with a 3.6% increase in comparable sales. Notably, women's apparel, active, men's apparel, kids, and shoes experienced the strongest growth in 2024.
The company's digital sales accounted for 36% of total net sales, with a 2.3% increase in digital sales compared to 2023. Nordstrom's net sales decreased by 0.5% compared to the previous year, while Nordstrom Rack's net sales increased by 8.0%. The company also saw a 3.1% increase in Gross Merchandise Value (GMV) for the total company.
Nordstrom's gross profit for 2024 was $5.161 billion, representing a 35.5% gross profit margin, a 90 basis point increase from 2023. Selling, general, and administrative expenses (SG&A) amounted to $5.125 billion, accounting for 35.2% of net sales, reflecting an increase of $270 million and 105 basis points as a rate of net sales compared to 2023.
Nordstrom's EBIT for 2024 was $495 million, representing a 3.4% EBIT margin, a significant increase from the previous year. The company's effective tax rate for 2024 was 25.3%, higher than the 8.6% rate in 2023, primarily due to additional tax benefits related to the wind-down of Canadian operations and the favorable resolution of certain tax matters recorded in 2023.
In December 2024, Nordstrom, Inc. announced a pending merger agreement with members of the Nordstrom family and Liverpool to acquire all outstanding common shares of Nordstrom, Inc. not already beneficially owned by the Nordstrom family and Liverpool. Upon completion, the company's common stock will be delisted from the NYSE, and Nordstrom, Inc. will become a private company.
The 10-K report provides a detailed insight into Nordstrom's financial performance, strategic initiatives, and pending corporate developments, offering investors and stakeholders a comprehensive understanding of the company's operations and outlook for the future. As a result of these announcements, the company's shares have moved 0.2% on the market, and are now trading at a price of $24.35. If you want to know more, read the company's complete 10-K report here.
