Aug 15 Nordstrom Inc on Thursday
reported lower than expected revenue in its second fiscal
quarter as comparable sales at its department stores slipped,
prompting the luxury department store chain to lower its
full-year sales and profit forecast.
The luxury retailer reported that comparable sales in the
quarter ending Aug. 3 rose 4.4 percent from the year-ago period,
below the 6.8 percent increase analysts were expecting,
according to Thomson Reuters I/B/E/S. Overall sales rose 6.4
percent to $3.1 billion.
It was the second quarter in a row that Nordstrom - long
favored by investors for its growth and discipline - had
reported disappointing sales and lowered its sales forecast.
Shares were down 2.3 percent to $58 in after-hours trading.
Nordstrom's big online push was the biggest factor behind
the disappointing same-store sales - sales at its department
stores open at least one year fell 0.7 percent, while e-commerce
sales mitigated some the damage, rising 37 percent.
Without the benefit of the earlier timing of Nordstrom's
anniversary sale, its biggest event of the year, companywide
same-store sales would have been up only 1.9 percent.
The company said sales trends "remained softer than
expected" even after a slow start to the year.
For the full fiscal year, which began Feb. 3, Nordstrom
revised its outlook and now expects same-store sales to rise 2
to 3 percent, compared with an earlier projected rise in the
range of 3 to 5 percent.
It now expects full-year earnings per share of $3.60 to
$3.70 per share, down from $3.65 to $3.80
Nordstrom said net income for the fiscal second quarter
ended Aug. 3 rose to $184 million, or 93 cents a share, from
$156 million, or 75 cents per share a year earlier. That was
five cents better, helped by lower selling and administrative
costs that the company did not identify.
Nordstrom's Rack chain of outlets, which the retailer plans
to double in number by 2016, saw overall sales rise 12 percent,
and same-store sales increase 2.4 percent.