Pedestrians pass outside a Nordstrom Inc. store in the Midtown neighborhood of New York on March 20, 2020.
Gabby Jones | Bloomberg | Getty Images
Nordstrom stock rebounded Tuesday after the department store reported that third-quarter sales rose faster than analysts expected, suggesting that the holiday season may be stronger than some investors expected if trends continue .
Nordstrom shares recently rose more than 5% in extended trading on Tuesday.
"We are encouraged by the positive momentum and expect further progress in the fourth quarter and through 2021," said Pete Nordstrom, president and chief brand officer of Nordstrom.
Here's how the company performed in the third fiscal quarter ended October 31, compared to analysts' expectations based on refinitive data:
Earnings per share: 34 cents versus an expected loss of 6 cents. Revenue: $ 3.09 billion versus $ 3.10 billion expected
According to Nordstrom, net income fell from $ 126 million, or 81 cents per share last year, to $ 53 million, or 34 cents per share. Analysts surveyed by Refinitiv had expected an average loss of 6 cents per share.
Total revenue for the company declined to $ 3.09 billion from $ 3.67 billion a year ago, and was below what analysts had expected to be $ 3.10 billion.
Digital revenue for the three month period was $ 1.6 billion, accounting for 54% of retail sales.
Nordstrom was among those retailers who were forced to close their doors in the early days of the coronavirus pandemic. Total sales decreased 40% in the first quarter and 53% in the second quarter compared to the same period last year.
In the third quarter, total sales only decreased 16%. About 10% of this came from the anniversary sale, which was postponed from the second quarter of the previous year to the third quarter of this year.
Nordstrom did not provide an outlook for the fourth quarter, which can be a major sales driver due to Christmas gifts.
This story evolves and is updated.