November sales results for leading fashion retailer,
Nordstrom Inc.
(
JWN
), were disappointing with comparable store sales (comps)
declining 1.1% compared with the year-ago period. Comps for the
company's full-line segment were down 2.0%, while Nordstrom Rack
recorded a comps increase of 4.3%.
For the four weeks ended November 24, 2012, total retail sales
climbed 1.8% to $926 million from $910 million reported for the
four-week period ended November 26, 2011.
During the month, the company witnessed poor sales in the first
half of the month as the Half-yearly Sale for Women and Kids
apparel was a letdown. Additionally, sales results for the month
were impacted as stores remained closed in the Northeast and
Mid-Atlantic regions due to Hurricane Sandy. However, sales
trends picked up in the second half of the month, returning to
the recent historical levels.
Year-to-date through November 24, 2012, Nordstrom's total retail
sales elevated 10.4% to $9,092 million driven by a 6.7% increase
in comparable store sales. During the period, the company's
comparable store sales at Nordstrom full-line and Nordstrom Rack
segments augmented 7.0% and 7.2%, respectively.
Peer Performance
One of Nordstrom's competitors,
Gap Inc.
(
GPS
), registered a 3% rise in comparable store sales for the month
of November, while net sales came in at $1.52 billion, up 3.4%
compared with the prior-year period.
Geared up for More Stores
During November, Nordstrom successfully executed its plan of
opening two Nordstrom Rack stores at Warwick Mall in Warwick,
Rhode Island; and Northgate Mall in Seattle, Washington.
Going forward, the company is set to open one Nordstrom Rack
store at River Ridge Shopping Center in Birmingham, Alabama in
spring 2013. The company also plans to relocate its Nordstrom
Rack store at Promenade at Howard Hughes Center in Los Angeles,
California to Westfield Culver City in Culver City, California in
fall 2013.
Our Recommendation
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
remains Neutral.
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