Nordstrom’s Q1 profits hurt by promotions, shipping; misses Street
Seattle — Nordstrom Inc. reported Thursday that profit for the first quarter edged up just 2.7% to $149 million, compared with $145 million in the same period last year. Results, which were negatively impacted by free shipping offers and promotional initiatives, met internal expectations but missed Wall Street estimates.
Sales soared 13.7% to $2.53 billion, but still missed analysts’ forecast of $2.55 billion. Same-store sales rose 8.5%.
Nordstrom has seen strong performance of late, as the luxury category has continued to gain strength, but investments into customer experience initiatives such as free shipping on all online purchases with no minimum purchase requirement have squeezed profit margins. The initiatives, however, have had a positive impact on Nordstrom’s e-commerce business, as online sales rose 44.2% in the quarter ended April 28.
Diversity group honors AAFES COO
DALLAS — The Texas Diversity Council on Wednesday commended the Army and Air Force Exchange Service for its commitment to diversity and inclusion.
AAFES’s COO, Mike Howard, was one of two 2012 winners of the Champions Diversity Leadership Award at the council’s annual Diversity and Leadership Conference. Howard was recognized for being a visible champion of diversity and inclusion not only at AAFES, but the community as well.
The TXDC is a nonprofit organization that was established in 2004 to foster a learning environment for organizations to grow in their knowledge of diversity and inclusion.
Dillard’s sees strong profit growth in Q1
Little Rock, Ark. — Dillard’s said Friday that net income for the quarter ended April 28 rose to $95 million, from $76.7 million in the year-ago period, setting a company record for profit increases.
Sales rose to $1.55 billion, from $1.47 billion. Same-store sales climbed 5%, the department store retailer’s seventh consecutive quarter of comp increases.
Dillard’s said it saw its greatest strength in the first quarter from the central region of the United States, followed by the eastern and the western regions.