) reported comparable store sales (comps) up 0.9% for the four-week
period ended July 28, 2012. Comps at Nordstrom's two business
segments - Nordstrom full-line and Nordstrom Rack - increased 1.3%
and 9.7%, respectively, compared with the year-ago period. Total
retail sales climbed 1.1% to $1,004 million from $993 million
reported in July last year.
Nordstrom's total retail sales for the second quarter grew 7.4%
to $2,918 million driven by a 4.5% increase in comparable store
sales. During the quarter, the company's comparable store sales at
Nordstrom full-line and Nordstrom Rack segments increased 4.9% and
Nordstrom's July as well as second quarter comps were impacted
compared to last year mainly due to the partial shift of the
company's Anniversary sale event into August. The company's
Anniversary sale for this year began a week later in July, causing
the shifting of one week of the event into August.
One of Nordstrom's competitors,
) registered a 10% rise comparable store sales for the month of
July, while net sales came in at $1.06 billion, up 12% compared
with the prior-year period.
Store Expansion Plans Progress
On the last day of July, Nordstrom announced plans to open a new
Nordstrom Rack store in California. Located at the One Eleven Towne
Center in Palm Desert, the store will enclose an area of 34,000
square feet. The company expects the store to be operational by
spring 2014. It will mark the company's first store in the greater
Nordstrom's Rack stores generally offer merchandise from
Nordstrom stores and Nordstrom.com at a significantly reduced price
to customers. Products at these stores are sold with discounts of
roughly 50% to 60% from the original Nordstrom tags. Nordstrom Rack
also carries a vast assortment of branded apparel, accessories and
shoes that are available at Nordstrom stores, and are offered to
customers with a discount of about 30% to 70%.
Nordstrom's latest store openings signify the company's
commitment to expand its store network with the aim to drive its
top-line growth. As of August 2, 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 #3 Rank, which translates into a
short-term Hold rating. Our long-term recommendation on the stock
GAP INC (GPS): Free Stock Analysis Report
NORDSTROM INC (JWN): Free Stock Analysis Report
To read this article on Zacks.com click here.