Nordstrom racks up earnings in Q2
Online shopping may be making a huge dent in the retail world, but Seattle-based retailer Nordstrom recently reported unadjusted earnings of $0.67 per share, which exceeded company expectations, according to a Nordstrom press release regarding second quarter sales.
Analyst expectations were for $0.57 a share, so the numbers were definitely welcomed by the high-end store. That noted, revenue fell slightly short, at $3.65 billion under projections of $3.68 billion.
"Over the past several quarters, our team has been actively addressing our inventory, expense and capital, and in the second quarter, made substantial progress by bringing down inventory in-line with sales," said Blake Nordstrom, co-president, Nordstrom, Inc. "Those efforts, along with the strength of our Anniversary Sale and a great response from customers to that event, drove better than expected results for the second quarter."
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Retail seems to be making a comeback overall, as Macy’s, Ralph Lauren and Kohl’s reported higher earnings than were expected for Q2.
The news sent Nordstrom stock on an upswing, posting 7.53% for the day the news was released. The Nordstrom Rack brand, which consists of Nordstrom Rack stores and Nordstromrack.com/HauteLook, saw net sales increase 11.2%, and comparable sales increased 5.3 percent, with the east coast being the top-performing geographic region. The Rack also grew by 22 stores over the last year, and gross square footage increased by over a million for the retailer. The outlook for the company shows earnings per share up to $2.75.
Apparently, retail is not dead.