Nordstrom Inc. shares have soared to more than 32% due to a faster-than-expected recovery at the company’s off-price Rack outlets which have helped raise hopes about the department store’s ability to staunch further market-share losses against bigger rivals, writes Reuters.

For the majority of last year, the company dealt with severe shortages of women’s apparel and shoes at Rack stores.

The management blamed the underperformance on a mix of faulty internal decisions just as much as wider supply-chain issues, the latter of which many large companies are struggling with.

According to Chief Executive Officer Erik Nordstrom, fourth-quarter sales at Rack improved 320 basis points sequentially. Mr. Nordstrom has said the business is well on its way to recovery with the department store boosting its inventory and pushing for higher-priced products to bolster margins.

“We have a lot of effort going on in our Rack business… we like our plans and believe there’s the opportunity for continued improvement there,” Mr. Nordstrom said on an analyst call.

Wall Street was also impressed with how the company has been bouncing back, especially since its issues were responsible for a string of quite disappointing quarterly results from Nordstrom in 2021, leading to the company falling further behind its chief rivals Macy’s Inc. and Kohl’s Corp.

Over the last 12 months, Nordstrom’s shares have lost nearly half their values, whereas Macy’s have gained roughly 60%.

“While it is still early stages, we are encouraged by the initial improvement driven by better in-stock positions,” said analysts for Cowen & Co in a post-earnings note, raising its price target by $5 to $30.

More than five other brokerages have also raised their price targets, giving 2022 a rather promising sales outlook in the wake of new demands.

Read more about Nordstrom’s recovery in Reuters.