Nordstrom’s net income slips in Q4; plans 31 new stores
Seattle – Holiday markdowns and costs associated with growing its Nordstrom Rack outlet brand and planned entry into Canada had a negative impact on net earnings at Nordstrom Inc. during fourth quarter 2013. Fourth quarter net earnings slipped 6% compared to the same quarter the prior year, to $268 million from $284 million.
Net earnings for the full fiscal year remained almost flat, slightly rising to $735 million from $734 million. Both earnings figures fell short of Wall Street expectations.
Nordstrom did better with its net sales results. For the quarter, net sales rose slightly to $3.61 billion from $3.59 billion, and for the year grew 3% to $12.16 billion from $11.76 billion. Same-store sales grew 2.2% during the quarter and 2.3% during the fiscal year. For fiscal 2014, Nordstrom expects total sales to grow 5.5 to 7.5% and same-store sales to rise 2 to 4%. For the first quarter, total sales are expected to rise 3.5 to 5.5%.
Looking ahead, Nordstrom plans to open 28 Nordstrom Rack stores and three full-line Nordstrom stores during fiscal 2014. In addition, the company expects its planned entry into Canada to continue to be dilutive to earnings, primarily due to ongoing infrastructure investments and pre-opening costs. The estimated loss before interest and taxes for Canada is expected to be approximately $35 million in fiscal 2014, compared with a loss before interest and taxes of $14 million in fiscal 2013. This outlook also incorporates Nordstrom Rack’s accelerated store expansion and increased technology investments to improve service and experience across all channels.
SRS names senior VP and market leader in Austin
Dallas — SRS Real Estate Partners has appointed Will Majors senior VO and market leader. Majors will focus on tenant and landlord representation. He will also be responsible for signing new clients and recruiting qualified brokers.
Majors brings more than 12 years of experience in the retail real estate industry to his new post. Previously, he worked at Endeavor Real Estate Group where he was responsible for more than 2 million sq. ft. of transactions.
Nordstrom ‘Rack’s’ up sales
Rapid expansion of Nordstrom Rack stores and strong sales at the off price division enabled the department store retailer to exceed its fourth quarter profit forecast.
The company said same store sales at Rack increased 3.6% on top of a price year increase of 7.1% while sales at full line stores declined 3.3% after increasing 2.2% last year.
The company ended the year with 117 full line stores and plans to open three units this year. There were 143 Rack and other formats in operation at the end of last year thanks to the addition of 22 new stores and plans call for 27 new units this year.