Nordstrom vs Ross Stores: Revenue, Profit and Business Model
Nordstrom reported $15B of revenue in FY2024 and $294M of net income. Ross Stores reported $22.8B of revenue in FY2025 and $2.1B of net income.
Latest financial snapshot
Nordstrom
- Latest revenue
- $15B (FY2024)
- Net income
- $294M
- Net margin
- 2.0%
- Revenue growth
- +0.4% a year, FY2015–FY2024
Ross Stores
- Latest revenue
- $22.8B (FY2025)
- Net income
- $2.1B
- Net margin
- 9.4%
- Revenue growth
- +6.5% a year, FY2016–FY2025
Financial summary
Nordstrom
Nordstrom's last public annual report covered FY2024 (ended February 1, 2025): total revenues of $15.016B, net sales of $14.557B, and net earnings of $294M, up from $134M in FY2023. Revenue peaked at $15.860B in FY2018, fell to $10.715B during the FY2020 pandemic year with a $690M loss, and has hovered around $15B since. Since going private in May 2025, Nordstrom no longer publishes quarterly results. Leadership told WWD in early 2026 that the company had less debt than a year earlier and had already repaid the debt taken on for the buyout using operating cash.
Ross Stores
Ross grew sales from $12.9 billion in fiscal 2016 to $22.8 billion in fiscal 2025, with a sharp dip to $12.5 billion in pandemic-hit fiscal 2020. Net income reached $2.1 billion in fiscal 2025. Fiscal 2026 accelerated: Q1 sales rose 21% to $6.0 billion on 17% comps, and Q2 sales rose 13% to $6.3 billion on 10% comps. Q2 net income of $851 million included about $253 million in IEEPA tariff refunds, worth roughly $0.60 per share. Ross plans to repurchase $1.275 billion of stock in fiscal 2026 under a two-year $2.55 billion authorization approved in March 2026.
Revenue and profit by year
Nordstrom
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2024 | $15B | $294M | 2.0% | +2.2% | Source |
| FY2023 | $14.7B | $134M | 0.9% | -5.4% | Source |
| FY2022 | $15.5B | $245M | 1.6% | +5.0% | Source |
| FY2021 | $14.8B | $178M | 1.2% | +38.0% | Source |
| FY2020 | $10.7B | -$690M | -6.4% | -31.0% | Source |
| FY2019 | $15.5B | $496M | 3.2% | -2.1% | Source |
| FY2018 | $15.9B | $564M | 3.6% | +2.5% | Source |
| FY2017 | $15.5B | $437M | 2.8% | +4.9% | Source |
| FY2016 | $14.8B | $354M | 2.4% | +2.2% | Source |
| FY2015 | $14.4B | $600M | 4.2% | — | Source |
Ross Stores
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $22.8B | $2.1B | 9.4% | +7.7% | Source |
| FY2024 | $21.1B | $2.1B | 9.9% | +3.7% | Source |
| FY2023 | $20.4B | $1.9B | 9.2% | +9.0% | Source |
| FY2022 | $18.7B | $1.5B | 8.1% | -1.2% | Source |
| FY2021 | $18.9B | $1.7B | 9.1% | +50.9% | Source |
| FY2020 | $12.5B | $85.4M | 0.7% | -21.9% | Source |
| FY2019 | $16B | $1.7B | 10.4% | +7.0% | Source |
| FY2018 | $15B | $1.6B | 10.6% | +6.0% | Source |
| FY2017 | $14.1B | $1.4B | 9.6% | +9.9% | Source |
| FY2016 | $12.9B | $1.1B | 8.7% | — | Source |
Where the revenue comes from
Nordstrom
- Nordstrom Banner (Full-Line Stores and Nordstrom.com)
Majority of net sales
Full-price sales of designer and premium apparel, shoes, beauty, and accessories through full-line stores, Nordstrom Local, and Nordstrom.com.
- Nordstrom Rack (Stores and NordstromRack.com)
Remainder of net sales
Off-price sales through Rack stores and NordstromRack.com; Rack is the company's main source of new customers.
- Credit Card Revenue
About $459M in FY2024
Revenue from the Nordstrom credit card program with TD Bank, the difference between FY2024 total revenues ($15.016B) and net sales ($14.557B).
Ross Stores
- Ross Dress for Less store sales
- dd's DISCOUNTS store sales
- Apparel
- Footwear
- Home fashion
- Accessories and seasonal merchandise
Business model and strategy
Nordstrom
How it makes money
Nordstrom makes money by selling apparel, shoes, beauty, accessories, and home goods through two banners. The Nordstrom banner covers full-line department stores, Nordstrom Local service hubs, and Nordstrom.com, selling designer and premium brands at full price with services such as alterations and styling.
Growth strategy
Nordstrom's growth plan has three parts. First, accelerate Nordstrom Rack, its largest source of new customers, with 22 openings in 2025 and a goal of up to 50 per year. Second, refine full-line store assortments, adding younger brands such as Princess Polly and planned 2026 additions such as NikeSkims and Hill House Home.
Competitive advantage
Nordstrom's advantage is a service reputation built over 125 years combined with a connected store, digital, and off-price network. Shoppers can buy online and pick up, return, or get alterations in stores, and Rack introduces younger, value-focused customers who often move to the full-price banner. Management says a good share of new Rack customers shop Nordstrom within three to four years.
Ross Stores
How it makes money
Ross earns nearly all revenue from in-store merchandise sales at Ross Dress for Less and dd's DISCOUNTS. More than 800 merchants buy branded apparel, footwear, home goods and accessories from manufacturer overruns, canceled orders and closeouts. Part of that buying is held as packaway inventory for later seasons.
Growth strategy
Growth comes mainly from new stores and comparable store sales. Ross raised its 2026 opening plan to 115 locations after opening 64 in the first half. Under CEO Jim Conroy, the company has added marketing, brand-forward merchandise and in-store experience changes, and management credits traffic from both new and existing customers for the 2026 comp gains.
Competitive advantage
Ross's edge is buying scale plus low operating cost. A large merchant team and long vendor relationships give it access to branded closeout goods, and lean store formats let it price 20% to 60% below department store regular prices while still earning a double-digit operating margin. Staying store-only avoids the shipping and returns cost that weighs on online sellers of low-ticket apparel.
Questions about Nordstrom vs Ross Stores
Which company has higher revenue — Nordstrom, Inc. or Ross Stores, Inc.?
Nordstrom, Inc. reported $15.0B (FY2024), while Ross Stores, Inc. reported $22.8B (FY2025). By last reported revenue, Ross Stores, Inc. is the larger business, with Nordstrom, Inc. reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Nordstrom, Inc. vs Ross Stores, Inc.?
Ross Stores, Inc. has a market capitalisation of $73.7B. A public market cap figure for Nordstrom, Inc. was not available (it may be privately held).
Which is more financially efficient — Nordstrom, Inc. or Ross Stores, Inc.?
Nordstrom, Inc. generates $273k / employee in revenue per employee, while Ross Stores, Inc. generates $205k / employee. Nordstrom, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Nordstrom, Inc. and Ross Stores, Inc. make money?
Nordstrom, Inc. and Ross Stores, Inc. generate revenue in fundamentally different ways. Nordstrom, Inc.: Nordstrom makes money by selling apparel, shoes, beauty, accessories, and home goods through two banners. Ross Stores, Inc.: Ross earns nearly all revenue from in-store merchandise sales at Ross Dress for Less and dd's DISCOUNTS.
Is Nordstrom, Inc. bigger than Ross Stores, Inc.?
By last reported revenue, Ross Stores, Inc. ($22.8B (FY2025)) is the larger company compared to Nordstrom, Inc. ($15.0B (FY2024)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Nordstrom vs Ross Stores overview