Fashion retailer Nordstrom, Inc. ( JWN ) late Monday said its third quarter profit nearly tripled from last year, but disappointing sales at its outlet stores sent its shares lower in aftermarket trading.
The Seattle-based company reported third quarter net income of $119 million, or 53 cents per share, compared with $83 million, or 38 cents per share, in the year-ago period.
Net sales jumped nearly 12% from last year to $2.09 billion.
On average, Wall Street analysts expected a smaller profit of 51 cents per share, on lower revenue of $2.07 billion.
Looking ahead, the company boosted the low-end of its full-year profit forecast by 10 cents, saying it now expects full-year profit to range from $2.60 to $2.65 per share. Analysts currently expect $2.64 per share for the year.
Same-store sales at the company's Rack outlet stores fell 2.2% in the period, however, and the company was unable to provide a time frame for comparable sales to rise again. It's betting on the new chain to spur growth in its retail business.
Nordstrom shares fell $1.33, or -3.2%, in premarket trading Tuesday.
The Bottom Line
Shares of Nordstrom Inc. ( JWN ) have a 1.91% dividend yield, based on last night's closing stock price of $41.83. The stock has technical support in the $36-$38 price area. If the shares can firm up, we see overhead resistance around the $44-$46 price levels.
Nordstrom, Inc. ( JWN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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