Nordstrom raises outlook as Q2 sales, earnings cruise past expectations
Nordstrom was firing on all cylinders in its second quarter, fueled by strong gains in digital sales and robust traffic at its off-price and regular-price stores.
The department store retailer earned $162 million, or 95 cents a share, in the quarter ended Aug.4, compared with $110 million, or 65 cents a share, in the year-ago period. Analysts had expected 84 cents a share.
Revenue rose 7.1% to $4.07 billion, topping Street expectations of $3.97 billion. The top-ranking merchandise categories were kids' apparel and beauty. The revenue increase was helped by Nordstrom’s anniversary sale whose impact “is expected to fully reverse in the third quarter,” the company said in a statement.
Same-store sales increased 4%, easily topping estimates. Same-store sales were up 4.1% at Nordstrom's full-price locations, and 4% at Nordstrom Rack. Digital sales rose 23%, and accounted for 34% of second-quarter sales, up from 29% a year ago.
Nordstrom raised its full fiscal-year sales outlook to between $15.4 billion and $15.5 billion, up from a previous estimate of $15.2 billion and $15.4 billion. It forecast earnings per share earlier of between $3.50 and $3.65 compared to its earlier estimate of $3.35 and $3.55 a share.