Nordstrom posts higher quarterly sales buoyed by demand for Anniversary Sale event

Aug 27 (Reuters) - Nordstrom reported an increase in second-quarter sales on Tuesday, buoyed by its crucial Anniversary Sale event, even as consumers remain cautious amid inflationary pressures.

The upmarket department store chain also slightly revised its annual comparable sales forecast, raising the lower end to a range of flat to 2% growth, up from its previous projection of a 1% decline to 2% growth.

While affluent shoppers continue to spend, albeit at a slower pace, benefiting apparel chains such as Abercrombie & Fitch and Gap, middle- and lower-income consumers are feeling the pinch, hurting sales at department store chains such as Macy's..

A slightly earlier start to Nordstrom's Anniversary Sale event, which ran from July 15 through August 4 this year, helped drive customers to both physical stores and the company's website, contributing 100 basis points to net sales compared to 2023.

Nordstrom's shares have declined approximately 3% over the past month. Analysts cited muted demand during the sale period, with Placer.ai foot traffic data suggesting July was the quarter's weakest month.

The stock is up about 16% this year compared with a roughly 18% rise in the broader S&P 500 index.

Total revenue at the company rose to $3.89 billion in second quarter, from $3.77 billion a year earlier, almost in line with analysts' average expectation of $3.90 billion, according to LSEG data.

The Seattle, Washington-based company also revised its earnings per share projection to between $1.75 and $2.05, up from the previous range of $1.65 to $2.05

On an adjusted basis, the company reported a profit of 96 cents per share, compared to 24 cents loss in the first quarter.

(Reporting by Savyata Mishra in Bengaluru; Editing by Tasim Zahid)