Nordstrom (JWN) Q4 2025 earnings summary

Executive summary

• Revenue, comparable sales, and earnings reached or exceeded the high end of fiscal 2024 outlook, with strong EBIT margin expansion year-over-year.

• Fourth quarter net earnings were $165 million ($0.97 EPS); adjusted EPS was $1.10, excluding privatization fees and accelerated technology depreciation.

• Full-year net earnings were $294 million ($1.74 EPS); adjusted EPS was $2.17, with adjusted EBIT of $593 million (4.1% of sales).

• Fourth quarter comparable sales rose 4.7% year-over-year; Nordstrom banner up 5.3%, Nordstrom Rack up 3.5%.

• Board declared a $0.19 per share quarterly dividend; CFO Cathy Smith to step down, with a search for a new CFO underway.

Financial highlights

• Fourth quarter net sales decreased 2.1% year-over-year, but increased 2.5% excluding the 53rd week in 2023.

• Full-year revenue increased 2.2% (3.6% excluding the 53rd week); full-year comparable sales up 3.6%.

• Gross profit margin in Q4 was 37.3%, up 290 bps, driven by merchandise margin expansion and lower shrink.

• SG&A expenses were 34.4% of net sales in Q4, up 200 bps, mainly due to higher labor costs, privatization fees, and accelerated technology depreciation.

• EBIT for Q4 was $242 million (5.8% margin); adjusted EBIT $273 million (6.5% margin).

• Ended the year with $1.8 billion in liquidity, including $1.0 billion in cash.

Segment performance

• Nordstrom banner Q4 net sales decreased 3.7% (up 0.5% excluding 53rd week); comparable sales up 5.3%.

• Nordstrom Rack Q4 net sales increased 1.2% (up 6.6% excluding 53rd week); comparable sales up 3.5%.

• Digital sales in Q4 decreased 1.8% (up 2.6% excluding 53rd week), representing 38% of total sales.