Published on 10 Apr 2024 on Zacks via Yahoo Finance
Nordstrom (JWN) Sets Priorities for 2024: Will It Aid Growth?
Nordstrom Inc. JWN success story hinges on the advancements made in fiscal 2023 toward enhancing customer experience and bolstering financial performance. In fiscal 2023, Nordstrom remained focused on improving its merchandise assortment by effectively managing its inventory levels, and making strategic investments in products and brands that align with customer preferences.The company achieved robust results in fiscal 2023 mainly backed by its focus on three priorities, including improving Nordstrom Rack performance, bolstering inventory productivity and optimizing supply-chain capabilities. These traits have aided JWN’s financial performance and enhanced customer experience.
Key Highlights
As part of improving Nordstrom Rack performance, JWN opened 19 new Rack stores in fiscal 2023. This expansion enhanced the brand's presence and served as a profitable investment, delivering returns that exceeded the cost of capital. As a result, Nordstrom Rack reported comparable store sales growth of high-single digits in fourth-quarter fiscal 2023.Apart from this, Rack banner witnessed strength in its digital business, particularly NordstromRack.com, through improvement in traffic and conversion rates. This also aided the site’s profitability in fiscal 2023.On the inventory front, it made progress on improving inventory productivity as evident from the positive sales-to-inventory spread in the fiscal fourth quarter. This resulted in a favorable inventory position as of the end of fiscal 2023.Nordstrom has been making efforts to enhance customer experience through faster delivery, under its supply-chain optimization work that began in early 2022. As a result, the company has been showcasing commendable improvement in variable supply-chain expense savings for the past few quarters. It delivered more than 50 basis points of improvement in variable supply-chain expense savings for the sixth straight time in the fiscal fourth quarter.