Nordstrom Inc. (JWN) Thursday posted a lower first-quarter profit, hurt by reduced margins that offset a near five percent growth in sales. Earnings for the quarter fell short of Wall Street estimates, as did revenues on lesser than planned volumes and weak demand for seasonal merchandise.
The high-end retailer cut its sales outlook for fiscal year 2013, sending its shares down three percent in after-hours trade on the New York Stock Exchange.
The company indicated the first two months of the quarter with soft sales trends in seasonal merchandise and geographically in the Northeast, Mid-Atlantic and Midwest regions.
Net sales for the quarter grew 4.8 percent from last year, with total company same-store sales up 2.7 percent.
Nordstrom same-store sales, which consist of the full-line and Direct businesses, increased 3.1 percent, with main categories pertaining to cosmetics, women's apparel and handbags.
Nordstrom Rack net sales grew 10 percent, with the opening of 16 new stores. Same-store sales at the segment was up 0.8 percent.
The Seattle, Washington-based company reported quarterly sales of $2.75 billion, compared with $2.63 billion a year ago. On average, 18 analysts polled by Thomson Reuters estimated sales of $2.80 billion for the quarter.
Gross margin fell 50 basis points, mainly on higher occupancy costs and lower than planned sales volume, with selling expenses up $40 million.
Nordstrom reported first-quarter net income of $145 million, compared with $149 million in the prior year.
However, on a per share basis, earnings improved to $0.73 from $0.70 last year, on a lower share count. Analysts on consensus expected earnings of $0.76 per share. Analysts' estimates typically exclude special items.
For fiscal year 2013, Nordstrom continues to expect earnings of $3.65 to $3.80 per share. It now estimates total sales growth of 4 to 6 percent, down from prior range of 4.5 to 6.5 percent. Analysts currently expect earnings of $3.80 per share on revenues of $12.95 billion for the year.
The company now expects 2013 same-store sales to grow 3 to 5 percent, down from a prior range of 3.5 to 5.5 percent.
Nordstrom closed Thursday's regular trade at $61.14, down 0.49%, on a volume of 2.8 million shares. In after hours, the stock dropped $1.88 or 3.08% at $59.25. In the past year, the stock has traded in a range of $46.27 - $61.81.
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