Leading fashion retailer,
), came up with outstanding comparable store sales (comps) for the
four-week period ended August 25, 2012. Gaining largely from the
shift in the timing of its largest sale event of the year - the
Anniversary Sale - partly into August, Nordstrom posted a fabulous
21.0% increase in comps. The event was carried out over a period of
8 days in August this year compared to only one day in 2011.
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In July, the company reported a 0.9% increase in comps compared to
the year-ago period. Together, July and August 2012 comps were up
8.4% from last year.
August Comps at Nordstrom's two business segments - Nordstrom
full-line and Nordstrom Rack - increased 24.0% and 7.1%,
respectively, compared with the year-ago period. Total retail sales
climbed 25.2% to $866 million from $691 million reported in August
Year-to-date through August 25, 2012, Nordstrom's total retail
sales augmented 12.1% to $6,319 million driven by an 8.0% increase
in comparable store sales. During the period, the company's
comparable store sales at Nordstrom full-line and Nordstrom Rack
segments increased 8.6% and 7.2%, respectively.
One of Nordstrom's competitors,
), registered a 9% rise in comparable store sales for the month of
August, while net sales came in at $1.20 billion, up 9.1% compared
with the prior-year period.
Store Expansion Plans
Nordstrom announced its plans of opening four new Nordstrom Rack
stores in September. The plans include opening of stores in three
different states including one store at Manchester Highlands in
Manchester, Missouri; one at Tysons Corner, Virginia; and two
stores in California located at the Carmel Mountain Plaza in San
Diego and Edinger Plaza in Huntington Beach.
Additionally, the company plans to relocate its Nordstrom Rack
store at the Mall at the Source in Long Island, New York to the
nearby Gallery at Westbury Plaza.
As of August 30, 2012, Nordstrom operated 117 Nordstrom full-line
stores, 110 Nordstrom Rack, 2 Jeffrey boutiques, 1
treasure&bond store and 1 clearance store, thus bringing the
total store count to 231.
Based in Seattle, Washington, Nordstrom Inc. offers high quality
apparel, shoes, cosmetics and accessories for men, women and kids.
The company offers both branded and private label merchandise, as
well as a private label card, two Nordstrom VISA credit cards and
debit cards for Nordstrom purchases.
Nordstrom maintains a Zacks #2 Rank, which translates into a
short-term Buy rating. Our long-term recommendation on the stock