Nordstrom Inc (JWN)

Operating profit margin

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Operating income US$ in thousands 495,000 4,003,000 535,000 465,000 5,278,000
Revenue US$ in thousands 15,016,000 14,693,000 14,693,000 15,530,000 15,530,000
Operating profit margin 3.30% 27.24% 3.64% 2.99% 33.99%

January 31, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $495,000K ÷ $15,016,000K
= 3.30%

Nordstrom Inc's operating profit margin has experienced fluctuations over the past few years, as evidenced by the provided data.

As of January 28, 2023, the operating profit margin stood at 33.99%, reflecting a robust profitability level. However, there was a significant decline by January 31, 2023, where the margin dropped sharply to 2.99%. This sudden decrease might indicate challenges or inefficiencies impacting Nordstrom's operational performance during that period.

Subsequently, there was a slight improvement in the operating profit margin by January 31, 2024, reaching 3.64%; however, the margin remained relatively low compared to the initial high point. The following year, by February 3, 2024, Nordstrom saw a notable surge in its operating profit margin to 27.24%, showcasing a strong recovery or improved operational efficiency.

By January 31, 2025, the operating profit margin decreased marginally to 3.30%. Overall, the fluctuating trend in Nordstrom's operating profit margin suggests varying levels of profitability and operational performance, which could be impacted by internal factors, market conditions, or strategic initiatives. Monitoring and analyzing these fluctuations can provide insights into the company's financial health and management effectiveness.