One of the leading fashion specialty retailers in the United
), once again reported robust sales and comparable store sales
(comps) results for the four-week period ended May 26, 2012.
Nordstrom's comparable store sales grew 5.3% for the month of
May compared with the four-week period ended May 28, 2011. During
the reported period, comparable store sales at Nordstrom's two
business segments - Nordstrom full-line and Nordstrom Rack -
increased 6.2% and 5.2%, respectively, compared with the year-ago
period. Total retail sales climbed 9.3% to $870 million from $796
million reported in May last year.
Year-to-date, Nordstrom's total retail sales climbed 12.6% to
$3,405 million, primarily driven by a 7.7% increase in comparable
store sales. During the period, the company's comparable sales grew
8.5% at Nordstrom full-line stores, while Nordstrom Rack stores
registered a growth of 6.4% in comparable sales.
One of Nordstrom's competitors,
) registered a 2% growth in same-store sales for the month of May,
while net sales came in at $1.10 billion, up 4% compared with the
During May, Nordstrom inaugurated two Nordstrom Rack stores, one
each at Commons in Temecula, California and the other at Willow
Grove Park in Willow Grove, Pa. As of May 26, 2012, Nordstrom
operated 117 Nordstrom full-line and 114 Nordstrom Rack and other
stores, thus bringing the total store count to 231.
Nordstrom's latest store openings signify the company's
commitment to expand its store network with the aim to drive
top-line growth. The company's focus on store expansion was also
evident from the opening of four new Nordstrom Rack stores in the
month of March and three new Nordstorm Rack stores in the month of
In fiscal 2011, Nordstrom added 18 new stores, contributing
significantly to a 12.7% year-over-year growth in fiscal 2011 net
sales. Moreover, Nordstrom plans to continue its store expansion
strategy in fiscal 2012 targeting to open a total of 16 new stores,
comprising 1 full-line store and 15 Rack stores.
Nordstrom also announced its intention to open a new 47,000
square foot Nordstrom Rack store in a building next to Sunvalley
Shopping Center during spring 2013. Sunvalley Shopping Center is
just five miles away from Nordstrom's store in Walnut Creek and is
occupied by large retailers such as
J. C. Penney Company Inc.
Sears Holdings Corporation
Nordstrom remains focused on expanding its store network to
drive top-line growth. Moreover, we believe Nordstrom's recently
acquired HauteLook Inc., an online private sale leader, will help
the company in building its multi-channel retail format. The
acquisition will facilitate Nordstrom to increase its direct
business capabilities, implement an enterprise-wide inventory
management system, direct sales to online customers and enhance
customer service. However, sluggish discretionary spending
environment, intense competition and exposure to seasonal
fluctuations keep us on the sidelines.
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 #3 Rank, which translates into a
short-term 'Hold' rating. Our long-term recommendation on the stock
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