Nordstrom reports mixed Q3 results
Seattle Nordstrom reported late Thursday that profits were up for the third quarter, as were total sales, but costs were higher than anticipated. For the quarter ended Oct. 31, the department store retailer recorded a profit of $83 million, up from $71 million in the year-ago period.
Third quarter same-store sales decreased 1.2%, compared with the same period in fiscal 2008. Net sales in the third quarter were $1.87 billion, an increase of 3.5% compared with net sales of $1.80 billion in the year-ago period.
While revenue figures beat Street expectations, profits fell short based on increased expense. Nordstrom said its fixed costs dropped from a year earlier, but it paid employees more in performance-related compensation than it expected because its sales were higher than expected.
The company’s capital expenditures are projected to total between $325 and $375 million in fiscal year 2010, compared with approximately $280 million in fiscal year 2009.
The company opened four full-line stores and 13 Nordstrom Rack stores since third quarter 2008, increasing retail square footage by 1.0 million, or 4.5%. It expects to open three full-line stores and approximately 15 Nordstrom Rack stores in 2010. In 2011, the company expects to open two to three full-line stores and 13-15 Nordstrom Rack stores.
Nordstrom currently operates 183 stores in 28 states.
Meijer looks to win toy price game
GRAND RAPIDS, Mich. Meijer is attempting to position itself as the toy leader this week, by claiming its toy book has the lowest prices on several popular items this year.
In a comparison of the top 95 toys among such leading retailers as Meijer, Walmart, Target and Toys ‘r Us, Meijer said it outdid its rivals in terms of low prices by a substantial margin. The 95-toy sample showed that Meijer’s cumulative prices were $68.19 less expensive than Walmart’s; $181.21 less than Target’s, and $187.32 less than Toys’R’Us.
The company noted that, for example, it is offering the Playskool Monty Rex for $54.99, which is price in Walmart’s toy book at $64.00, in Target’s at $58.99 and Toys’R’Us’ at $59.99.
“The annual toy books are the first salvo in what promises to be a very competitive season in retailing,” said Jeff Handler, SVP marketing for Meijer. “We’re sending a strong message with our toy book that we will be competitive with any national retailer on toy prices this holiday season. In fact, our toy book shows us meeting or beating national players on 90% of identical toys.”
Target finds natural beauty with Sonia Kashuk brushes
MINNEAPOLIS Target announced that it is offering an exclusive line of Sonia Kashuk natural beauty brushes.
The Limited Edition Natural Brush Collection are made of bamboo, cork and wood and feature a mix of natural hair and synthetic fibers. Items in the collection range from $12.99 to $19.99.