Tough Holidays Hurt Nordstrom Profit
Seattle Nordstrom Inc. on Monday said its profit fell more than 8% in the fourth quarter amid a holiday shopping season it called “challenging.”
The retailer said Monday it earned $212 million down from $232 million a year earlier. Quarterly sales slipped more than 4% to $2.5 billion, in line with Wall Street estimates and down from $2.6 billion last year.
Same-store decreased 0.7%.
For the fiscal year ended Feb. 2, net earnings increased 5.5% to $715 million compared to net earnings of $678 million last year. Full-year results include a gain of $20.9 million, net of tax for the sale of the Faconnable business, which closed during the third quarter.
Total sales for the year increased 3.1% to $8.8 billion compared to prior-year sales of $8.6 billion. As noted previously, fiscal 2006 included a 53rd week of sales totaling $117.7 million. Excluding the extra week of sales in fiscal 2006, total sales increased 4.6% in fiscal year 2007. For the year, same-store sales increased 3.9%.
In 2008, Nordstrom plans to open seven additional new full-line stores.
Onkyo to stop HD-DVD production
OSAKA, Japan Following Toshiba’s announcement that it would no longer manufacturer HD-DVD products, Onkyo said it has decided to discontinue development and production of HD-DVD players. Onkyo’s players are made with core parts supplied by Toshiba.
Onkyo said it has distributed and sold about 2000 units of HD-DVD players and will continue to provide support for all owners of its products. The company said it will continue to manufacture products geared toward the Blu-ray format.
Saks puts ‘Want It!’ on wheels
NEW YORK Saks Fifth Avenue is taking its “Want It!” campaign on wheels. According to reports, the retailer has decorated a double-decker bus with Want It! images and will use the bus as a means of transporting customers from the flagship Fifth Avenue store to popular destinations on the Upper East Side.
Customers can take the bus from March 13 to 15 and receive free admission to several museums featured in Saks’ Want It! ads. According to reports, Saks’ fashion director will be among personalities making guest appearances on the bus.
The Saks tour guides will reportedly sport Want It! fashions and use a script that promotes the season’s trends and includes a history of Saks Fifth Avenue.