Nordstrom Reports Higher Sales
November 10 2016 - 6:10PM
Dow Jones News
Department store operator Nordstrom Inc. reported higher
third-quarter sales that were helped by its Anniversary Sale,
breaking a streak of declines in a key sales figure.
Shares, up 12% this year, rose 6.9% to $59.90 in after-hours
trading Thursday.
Still, the retailer swung to a quarterly loss as it booked $197
million in charges from writing down Trunk Club, the men's retailer
Nordstrom bought in 2014 for $350 million.
Earlier Thursday, fellow retailers Macy's Inc. and Kohl's Corp.
reported lower sales and comparable sales, a key retail metric that
removes the sales impact of recently opened or closed stores. J.C.
Penney Co. is scheduled to report third-quarter results on
Friday.
Nordstrom now expects 2016 profits of $1.70 to $1.80 a share
with sales increasing 3.5% and comparable sales remaining roughly
flat from the year earlier. It had previously projected $2.60 to
$2.75 a share, with sales increasing 2.5% to 4.5% and comparable
sales ranging from a 1% decline to a 1% increase.
For the year ended Jan. 30, the Seattle retailer reported $3.15
a share in profit and $14.1 billion in sales, helped by a 2.7%
increase in comparable sales. Nordstrom defines comparable sales as
sales at stores open for at least a year and online sales.
Sales for the quarter ended Oct. 29 rose 7% to $3.47 billion.
Comparable sales increased 2.4%, compared with a 0.9% increase in
the year-ago period and in line with analysts' projections.
Removing the impact of the Anniversary Sale, Nordstrom said,
comparable sales would have increased 0.4%.
Sales at the company's full-price stores, which account for the
bulk of sales, improved 0.83%, with comparable sales increasing
0.5%. Meanwhile, sales at discount stores Nordstrom Rack and
HauteLook rose 10%, with comparable sales improving 3.9%.
Nordstrom reported a loss of $10 million, or 6 cents a share,
compared with a year-earlier profit of $81 million, or 42 cents a
share. Excluding impairment charges and other items, profit was 84
cents a share.
The results are based on 9% fewer shares outstanding.
Revenue, which includes credit-card revenue, rose 6% to $3.54
billion.
Analysts surveyed by Thomson Reuters had projected profit of 52
cents a share in adjusted profit on $3.48 billion in revenue.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
November 10, 2016 17:55 ET (22:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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