Modern Marketing

Nordstrom racks up earnings in Q2

By Kyle O'Brien | Creative Works Editor

August 12, 2016 | 3 min read

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.

Nordstrom

Nordstrom

"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.

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