Nordstrom Inc.'s (JWN) fiscal first-quarter earnings fell 2.7%
as higher input costs masked the high-end department store
operator's improved revenue, although per-share earnings
climbed.
Shares slipped 4% to $58.70 after hours as the company also cut
its 2014 revenue and same-store sales outlooks.
The company lowered its full-year total sales and same-store
sales guidance ranges by half a percentage point each, now
expecting 4% to 6% growth, and 3% to 5% growth, respectively.
For the current period, Nordstrom forecasts per-share earnings
to grow by more than 7% at roughly 86 cents, which is just below
the 87 cents projected by analysts polled by Thomson Reuters.
In the latest period, top-performing merchandise categories
included cosmetics, and women's apparel and handbags, while the
Northern California and Southwest regions were the best-performing
geographic areas relative to the year-earlier period.
Nordstrom, benefiting from revived demand for its designer
merchandise after a slump from 2008 to 2009 amid the global
economic crisis, has generally seen profits grow. Its off-price
Rack clearance stores continue to perform well, although customers
have returned to buying full-priced merchandise in recent
quarters.
For the quarter ended May 4, Nordstrom reported earnings of $145
million, or 73 cents a share, compared with $149 million, or 70
cents a share, a year earlier. The company in February said
first-quarter per-share earnings were anticipated to be up 3% to
7%, corresponding roughly to 72 cents to 75 cents a share--a
downbeat view at the time.
On Thursday, the company said that first-quarter performance was
consistent with the lower end of its expectations as
lower-than-planned sales volume was mitigated by the management of
inventory and expenses.
Total revenue, including credit card revenue, jumped 4.7% to
$2.75 billion. Analysts polled by Thomson Reuters expected revenue
of $2.81 billion.
Retail sales improved 4.8% to $2.66 billion, as same-store sales
were up 2.7%.
Net sales in the Rack segment were 10% higher, while the
segment's same-store sales climbed 0.8%.
Nordstrom same-store sales, which include the full line and
direct business, grew 3.1%.
Cost of sales and related buying and occupancy costs rose 5.6%
to $1.67 billion.
The stock is up 22% over the past 12 months.
Write to Debbie Cai at debbie.cai@dowjones.com
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