Nordstrom Management Changes & 3rd Quarter 2023 Results

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Nordstrom’s management recently announced some important management changes and also reported earnings for the third quarter. Since the personnel changes are important and will have a long-term effect on the company, they are listed first.

New Leadership Roles

Eric Nordstrom, CEO of Nordstrom, announced these new key leadership roles. They are listed below in the order they were announced.

1. Jamie Nordstrom, 56, was appointed chief merchandising officer. Jamie has worked with nearly every aspect of the Nordstrom business and has held broad-based leadership roles in merchandising, and store operations, along with positions across Nordstrom’s digital channels.

2. Fanya Chandler, 52, was named president of Nordstrom stores. She has held several leadership positions and recently was senior vice president of the Southwest region.

3. Gemma Lionello, 52, was appointed to the role of president, Nordstrom Rack. She previously served in numerous executive positions in both merchandising and stores, and she spent 11 years working within the Nordstrom Rack business.

4. Lisa Price, 47, rejoined Nordstrom as Chief Human Resources Officer. She has with a strong appreciation that the success of the Nordstrom business starts with Nordstrom’s people.

5. Nordstrom’s also welcomes Guy Persaud to be a member of the Board of Directors. He is a senior leader at Proctor & Gamble.

Company Earnings

Nordstrom reported 3rd quarter 2023 earnings. Revenues were $3.3 billion and earnings per share were $0.41. Profit growth was achieved despite lower sales. Net Sales this 3rd quarter were $3,200 million this year compared to $3,433 million last year, a 7.3% decrease. Net earnings were $67 million compared to a loss of ($20) million in the previous year. As a result, the diluted earnings this year of $0.41 per share compares very favorably to a loss of ($0.13) reported last year.

POSTSCRIPT: There is lots of excitement at Nordstrom these days. The strong emphasis now being placed on Nordstrom Rack is helping customers become familiar with the brand, and that is a very positive change. Nordstrom Rack recently opened 20 new units (including one that opened in the 4th quarter) and announced 15 additional units for 2024 and the beginning of 2025. This expansion plan reflects a bold growth strategy and is a heavy commitment on the basis of 259 stores. It is also worth noting that management closed one full line Nordstrom store and one Nordstrom local service hub. In the previous quarter, management closed the Canadian operation of seven stores. It took guts to close the unprofitable Canadian stores. All of these changes show that Nordstrom leadership is determined to focus on productive growth opportunities.

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