Nordstrom 3Q Profit Up Less-Than-Expected 17%; View Raised
DOW JONES NEWSWIRES
Nordstrom Inc.'s (JWN) fiscal third-quarter profit grew 17% as the high-end
clothing retailer reported higher revenue and margins, leading the company to
boost its fiscal-year outlook.
It now sees earnings of $1.83 to $1.88 a share and same-store sales falling 6%
to 7%. The company's August ranges were $1.50 to $1.65 for profit and a 9% to
12% same-store-sales drop.
However, shares fell 4.4% to $33 in after-hours trading as the latest
quarter's profit fell just short of analysts' average estimate. The stock has
more than doubled this year.
Some are hoping signs of an economic recovery will boost consumer confidence
after across-the-board cutbacks that hurt even high-end retailers, which were
once considered resilient to economic downturns. October's better-than-expected
same-store sales results are a sign upper-end retailers could see strong holiday
sales.
And while Nordstrom said Thursday there was continued uncertainty around
consumer spending, the company saw improved same-store sales trends in each
month of the quarter while managing its inventory and expenses.
For the quarter ended Oct. 31, the department-store chain reported earnings of
$83 million, or 38 cents a share, up from $71 million, or 33 cents a share, a
year earlier. Analysts polled by Thomson Reuters projected 39 cents.
Gross profit increased to 35.8% from 34.9%.
Nordstrom a week ago reported net sales for the quarter grew 3.5% to $1.87
billion, although same-store sales dropped 1.2%.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
(END) Dow Jones Newswires
11-12-091649ET
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