Nordstrom Beats on 3Q Earnings But Profit Falls
NEW YORK (TheStreet) - High-end fashion retailer Nordstrom
The Seattle-based company reported net income fell 6% to $137 million, or 69 cents a share, in the Nov. 2-ending quarter, compared to $146 million, or 71 cents a share, in the year-earlier quarter. Company net sales rose 2.9% to $2.79 billion; total revenue, which includes credit card revenue, came in at $2.88 billion.
Analysts, according to Thomson Reuters, expected the high-end retailer to post earnings of 66 cents a share on revenue of $2.87 billion.
Shares were falling 1.5% in post-markets trading to $62.50.
Nordstrom's total comparable store sales rose just 0.1%, benefitting from a positive 3.7% increase in Nordstrom Rack same-store sales. However, full line same-store sales decreased 4.2% in the quarter compared to a positive 8.1% growth in the prior year's quarter.
Nordstrom pointed out that last year's second and third quarters had the benefit of the retailer's Anniversary Sale, the largest sale of the year, which occurred only in the second quarter this year, shifting a benefit of approximately 6 cents per share to that quarter.
Nonetheless, the company noted that top-performing merchandise categories included cosmetics, women's shoes and specifically, in women's apparel.
Nordstrom slightly upped its full-year earnings outlook to between $3.65 and $3.70 a share compared to its prior estimate of $3.60 to $3.70 a share. Consensus estimates call for full-year earnings of $3.68 a share.
The luxury retailer narrowed expectations for total sales and same-store sales for the full year. Nordstrom expects total sales to rise 3.5% from a range of 3% to 4%. It expects same-store sales to rise 2.5% from a range of 2% to 3%.
Two other department store chains - Macy's
Macy's comfortably beat consensus earnings estimates and posted strong comparable-store sales, suggesting consumers responded favorably to the retailer's promotions and selections.
The retailer also noted that top-performing categories included women's apparel and housewares as well as "cold-weather" merchandise such as hats, coats and boots.