Fashion specialty retailer Nordstrom Inc. (JWN) said its third quarter profit increased 17% from last year, due to higher sales as consumers started spending, as the economy seem to move toward recovery. Quarterly earnings, however, failed to meet the Street consensus by a penny. Looking ahead, the company raised its earnings outlook for fiscal year 2009.
The Seattle, Washington-based company posted net earnings of $83 million or $0.38 per share for the third quarter, up from $71 million or $0.33 per share in the prior year quarter. On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.39 per share for the third quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew 4% to $1.96 billion from $1.88 billion in the previous year quarter.
Third quarter net sales increased 3.5% to $1.87 billion from $1.81 billion in the same quarter last year.
Fourteen analysts had a consensus revenue estimate of $1.87 billion for the third quarter.
Same-store sales decreased 1.2% over a year ago. Full-line same-store sales in the third quarter decreased 4.2%, while sales for Nordstrom Direct increased 16.4% over a year earlier.
Nordstrom said the Mid-Atlantic and the South regions were the top-performing geographic areas for full-line stores relative to the third quarter of 2008, while the Mid-Atlantic and Northeast regions achieved the largest sequential improvements over the second quarter of 2009.
Nordstrom Rack posted a 3% growth in same-store sales for the latest quarter, the third consecutive quarter of positive same-store sales results.
As a percentage of net sales, gross profit improved by about 90 basis points from the previous year quarter.
For the nine-month period of 2009, Nordstrom reported net earnings of $269 million or $1.23 per share, down from $333 million or $1.52 per share in the previous year period.
Net sales for the period declined to $5.72 billion from $5.97 billion, while total revenues dropped to $6.00 billion from $6.19 billion in the prior year period.
Looking ahead to fiscal year 2009, Nordstrom raised its earnings outlook to a range of $1.83 to $1.88 per share from its prior estimate of $1.50 to $1.65 per share. The Street currently estimates the company to report earnings of $1.81 per share for the year.
Same-store sales for 2009 are estimated to decrease in the range of 6% to 7%, compared to earlier forecast of a 9% to 12% drop.
The company expects to open 3 full-line stores and approximately 15 Nordstrom Rack stores in 2010. In 2011, the company expects to open 2-3 full-line stores and 13-15 Nordstrom Rack stores.
Nordstrom's capital expenditures, net of property incentives, are expected to total between $325 and $375 million in fiscal year 2010, up from $280 million in fiscal year 2009.
Among others in the industry, Saks Inc. (SKS) is slated to report third quarter results on November 17. Analysts project a loss of $0.12 per share on revenue of $621.96 million for the third quarter.
Chico's FAS Inc. (CHS) will report third quarter results on November 18. The Street expects Chico's to earn $0.07 per share on revenue of $414.71 million for the third quarter.
Nordstrom closed Thursday's regular trading session at $34.51, down 35 cents or 1.00%, on a volume of 5.57 million shares. In after-hours, the shares further lost $1.81 or 5.24%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.