Nordstrom (JWN, $32.00) earnings missed expectations, despite revenue beat

Nordstrom reported quarterly earnings that fell short of analysts’ expectations, amid rising labor costs hurting profits.

The retail company’s earnings for the three months ending October came in at 39 cents vs. 56 cents expected by analysts polled by Refinitiv.

Revenue of $3.64 billion, however, topped expectations of  $3.55 billion.

The company’s namesake department store brand’s revenue rose +11% year-over-year.  At Nordstrom Rack, an off-price division, revenue rose +35% from a year ago.

Digital sales (representing 40% of the business) plunged -12% year over year and rose +20% on a two-year basis. Nordstrom mentioned that its annual Anniversary Sale (which takes place primarily online) was moved entirely into the third quarter last year; however, this year it only fell during one week of the quarter.