Nordstrom, Inc. (NYSE:JWN) Q2 2022 Results Conference Call August 23, 2022 4:45 PM ET
Company Participants
Heather Hollander - Head, IR
Erik Nordstrom - CEO
Pete Nordstrom - President and Chief Brand Officer
Anne Bramman - CFO
Conference Call Participants
Edward Yruma - Piper Sandler
Omar Saad - Evercore
Matthew Boss - JPMorgan
Noah Zatzkin - KeyBanc
Chuck Grom - Gordon Haskett
Katy Hallberg - Cowen
Tracy Kogan - Citi
Simeon Siegel - BMO Capital Markets
Operator
Greetings, and welcome to the Nordstrom Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. We will begin with prepared remarks, followed by a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded.
At this time, I’ll turn the call over to Heather Hollander, Head of Investor Relations for Nordstrom. You may begin.
Heather Hollander
Good afternoon, and thank you for joining us. Before we begin, I want to mention that we’ll be referring to slides, which can be viewed in the Investor Relations section on nordstrom.com.
Our discussion may include forward-looking statements, so please refer to the slide with our safe harbor language. Participating in today’s call are Erik Nordstrom, Chief Executive Officer; Pete Nordstrom, President and Chief Brand Officer; and Anne Bramman, Chief Financial Officer, who will provide a business update and discuss the Company’s second quarter performance.
And now, I’ll turn the call over to Erik.
Erik Nordstrom
Thank you, Heather. And good afternoon, everyone. Thank you for joining us today.
We delivered solid results in the second quarter, with top-line growth, increased profitability, and
continued progress toward our long-term strategic and financial goals. We delivered these results despite customer demand decelerating significantly in late June, predominantly at Nordstrom Rack and in our lowest income customer cohorts. Though our second quarter was consistent with our previous guidance, we are updating our outlook for the balance of the year to reflect these softening trends and actions we are taking to reduce our inventory levels.
In the second quarter, customers continued to shop for occasions while also refreshing their wardrobes, which drove demand for our core categories and services. We know customers look to us for the occasions that matter most and we were well-positioned to serve them with our differentiated product offering, the convenience of our interconnected model, and our commitment to customer service.
Total sales increased 12% over last year, which includes a benefit of approximately 200 basis points from one week of the Anniversary Sale shifting into the second quarter. Total digital sales grew 6%. Nordstrom banner sales and gross merchandise value, or GMV, each increased 15% over last year, and sales showed sequential improvement over pre-pandemic levels. Rack sales grew 6%.