Nordstrom Q1 profit and sales disappoint
Seattle — Nordstrom Inc. reported its first quarter net income fell a greater-than-expected 3%, hurt by weak demand for spring merchandise and softer performance in the Northeast and Midwest. The company also lowered its full-year sales forecast.
The results were a rare miss for the upscale department store chain whose shoppers have proved resilient throughout the uncertain economy.
Nordstrom’s net income in the quarter ended May 4 fell to $145 million, down from $149 million a year ago. Revenue increased 5% to $2.75 billion, missing Wall Street expectations. Same-store sales were up 2.7%.
Nordstrom’s top performing categories included makeup, women’s apparel and handbags.
At the company’s outlet store division, Nordstrom Rack, net sales increased 10% to $58 million, reflecting 16 store openings since the first quarter of fiscal 2012. Same-store sales increased 0.8%.
Stages Stores Q1 loss widens
Houston — Stage Stores reported a loss of $6.9 million for the first quarter, compared with a loss of $418,000 for the year-ago period, as the retailer dealt with cool weather that put a damper on sales of spring apparel.
"The unseasonably cool weather in March and April, particularly when compared to last year’s warm spring, strongly impacted our sales performance," president and CEO Michael Glazer said.
Revenue rose 4% to $378.6 million from $365.7 million. Same-store sales inched up 0.7%.
Bloomingdale’s heads to Hawaii
CINCINNATI — Bloomingdale’s is heading to Hawaii for the first time. It plans to open a 167,000-sq.-ft., three-level store at the Ala Moana Center in Honolulu on the Island of Oahu in fall 2015.
The new store will be part of a redevelopment of a portion of Ala Moana, Hawaii’s premier shopping destination, by General Growth Properties. Construction will begin in 2014. The upscale chain of department stores, owned by Macy’s, will join a Macy’s store which already operates at the shopping center.
The Bloomingdale’s store will include a wide range of designer and luxury goods, including women’s apparel, shoes, accessories, beauty, men’s, kids and home. Bloomingdale’s Ala Moana store is expected to employ a workforce of approximately 250 people.
“Ala Moana will provide an exceptional environment for the distinctive, upscale shopping experience for which Bloomingdale’s is world famous. It is a beautiful open-air shopping center that is a recognized destination not only for local customers from the Hawaiian islands, but also for visitors from the U.S. mainland, Asia and worldwide,” said Michael Gould, chairman and CEO of Bloomingdale’s. “In Hawaii, we will offer global customers the unique Bloomingdale’s sense of contemporary style, as well as the attentive service that sets us apart.”
Ala Moana will be the 38th Bloomingdale’s store location in the country. The retailer operates 36 store locations and plans to open a new store in Glendale Galleria in Glendale, Calif., this fall. In addition, it plans to replace an older store at the Stanford Shopping Center in Palo Alto, Calif., with an all-new Bloomingdale’s fall 2014.
Bloomingdale’s in Dubai is operated by Al Tayer Group under a license agreement. Bloomingdale’s also operates 12 outlet stores in the U.S., with a 13th opening in fall 2013 in Rosemont, Ill.