Strong online growth helps Nordstrom top Q2 estimates

Nordstrom on Thursday reported positive results for its second quarter amid ongoing discussions of a possible buyout.
 
The upscale department store retailer reported that total net sales increased 3.5% to $3.79 billion in the quarter ended July 29, compared to a forecast for $3.75 billion. Total company same-store sales rose 1.7%, also better than expected.
 
In the Nordstrom brand, including U.S. and Canada full-line stores and Nordstrom.com, net sales when combined with Trunk Club, increased 2.4% and comparable sales increased 1.4%. 
 
The top-performing merchandise categories were women's apparel and beauty, and the East was the top-ranking U.S. geographic region. The company noted that its Anniversary Sale, historically its largest event of the year, performed better than recent trends.  
 
In the Nordstrom Rack brand, which consists of Nordstrom Rack stores and Nordstromrack.com/HauteLook, net sales increased 9.8% and comparable sales increased 3.1%.
 
Online sales grew 20% at Nordstrom.com, and 27% at Nordstromrack.com/HauteLook. 
 
Net income fell to $110 million, or 65 cents per share, in the quarter, from $117 million, or 67 cents per share, in the year-ago period. Its results were just slightly ahead of estimates. 
 
Nordstrom slightly raised its full-year earnings forecast to $2.85-$3 per share from $2.75 - $3 per share, and said it now expected net sales for the year to increase about 4% instead of 3% - 4%.
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