Nordstrom net earnings fall in Q3
Seattle – Nordstrom reported declining net earnings during the third quarter of fiscal 2013 despite an increase in net sales. Net earnings totaled $137 million, down 7.5% from $146 million in the same quarter a year earlier.
Meanwhile, net sales were $2.79 billion, up 3% from $2.71 billion in the prior year. Same-store sales fell 0.7%. Nordstrom cited the timing of its largest sale event, the Anniversary Sale, as negatively impacting earnings. The Anniversary Sale fell during the second quarter this year but straddled the second and third quarters of last year.
Nordstrom announced plans to open four new Rack stores and relocate one Rack store during the remainder of fiscal 2013. Looking ahead, for fiscal 2013 the company is forecasting a 3.5% increase in total sales, compared to previous projections of a 3%-4% increase, and a 2.5% jump in same-store sales, compared to a previous estimate of 2%-3%.
Tile Shop won’t restate earnings
Plymouth, Minn. — The Tile Shop says it rejects a report stating its historical financial statements may require restatement along with other accounting irregularities. The company denies these allegations and believes that the financial statements are properly stated and its business practices are appropriate.
The report from Gotham City Research claims Tile Shop overstated its 2013 earnings by 200% and also failed to disclose that its largest supplier, Beijing Pingxiu, is a related company. Gotham City Research, which specializes in short-selling stock, said it believes Tile Shop will not get any further loans from its creditors until these issues are resolved.
In a press release, Tile Shop said it was unaware of previously undisclosed changes of the ownership of Beijing Pingxiu and it has suspended its relationship with the company. Tile Shop also said this issue had no material impact on its inventory purchases. The company also reaffirmed the guidance of net sales ranging from $227 million to $237 million, and adjusted EBITDA of $60 million along with the opening of 20 new stores for the year ending December 31, 2013 provided on October 30, 2013.
Destination Maternity, The Town Center of Virginia Beach, Virginia Beach, Va.
Destination Maternity Corp. is showing off a new superstore prototype, in Virginia Beach,Va. The 5,000-sq.-ft. store has a "discovery" or open floor plan that offers customers different paths to explore the space. Larger graphics, new fixtures and tables and enhanced fitting rooms create a modern, inviting environment. Merchandise is displayed in lifestyle zones, with elevated presentations of categories. There are also new mannequins, and more of them.
Designed to provide the ultimate shopping experience for expecting and new moms, the store contains such amenities as a juice bar, a relaxation area for family and friends complete with plush chairs and a flat-screen TV and a children’s play area.
Design: JGA, Southfield, Mich.
Photo: Destination Maternity Corp.