Nordstrom's Nov. Comps Disappoint - Analyst Blog
30 Novembre 2012 - 11:00AM
Zacks
November sales results for leading fashion retailer,
Nordstrom Inc. (JWN), were disappointing with
comparable store sales (comps) declining 1.1% compared with the
year-ago period. Comps for the company’s full-line segment were
down 2.0%, while Nordstrom Rack recorded a comps increase of
4.3%.
For the four weeks ended November 24, 2012, total retail sales
climbed 1.8% to $926 million from $910 million reported for the
four-week period ended November 26, 2011.
During the month, the company witnessed poor sales in the first
half of the month as the Half-yearly Sale for Women and Kids
apparel was a letdown. Additionally, sales results for the month
were impacted as stores remained closed in the Northeast and
Mid-Atlantic regions due to Hurricane Sandy. However, sales trends
picked up in the second half of the month, returning to the recent
historical levels.
Year-to-date through November 24, 2012, Nordstrom’s total retail
sales elevated 10.4% to $9,092 million driven by a 6.7% increase in
comparable store sales. During the period, the company’s comparable
store sales at Nordstrom full-line and Nordstrom Rack segments
augmented 7.0% and 7.2%, respectively.
Peer Performance
One of Nordstrom’s competitors, Gap Inc. (GPS),
registered a 3% rise in comparable store sales for the month of
November, while net sales came in at $1.52 billion, up 3.4%
compared with the prior-year period.
Geared up for More Stores
During November, Nordstrom successfully executed its plan of
opening two Nordstrom Rack stores at Warwick Mall in Warwick, Rhode
Island; and Northgate Mall in Seattle, Washington.
Going forward, the company is set to open one Nordstrom Rack store
at River Ridge Shopping Center in Birmingham, Alabama in spring
2013. The company also plans to relocate its Nordstrom Rack store
at Promenade at Howard Hughes Center in Los Angeles, California to
Westfield Culver City in Culver City, California in fall 2013.
Our Recommendation
Based in Seattle, Washington, Nordstrom Inc. offers high quality
apparel, shoes, cosmetics and accessories for men, women and kids.
The company offers both branded and private label merchandise, as
well as a private label card, two Nordstrom VISA credit cards and
debit cards for Nordstrom purchases.
Nordstrom maintains a Zacks #3 Rank, which translates into a
short-term Hold rating. Our long-term recommendation on the stock
remains Neutral.
GAP INC (GPS): Free Stock Analysis Report
NORDSTROM INC (JWN): Free Stock Analysis Report
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