Nordstrom Q3 Profit Falls 6.2 Percent as Sales Drop, Expenses Rise

Nordstrom Inc. (NYSE: JWN) reported a 6.2 percent drop in sales growth in the third quarter ending Nov. 2, but the results reported Thursday, Nov. 14 still managaged to beat Wall Street expectations.

The Seattle-based retailer reported net income fell to $137 million, or 69 cents a share, compared to $146 million, or 71 cents a share, a year ago. Net sales rose 2.9 percent to $2.79 billion while total revenue came in at $2.88 billion, slightly beating analysts' predictions of $2.87 billion.

Nordstrom says the slip in sales is partially due to a shift in when their Anniversary Sale, its largest annual event, occurred this fiscal year. Last year's second and third quarters had the benefit of the retailer's Anniversary Sale, which occurred only in the second quarter this year.

Overall same-store sales inched up only 0.1 percent, compared to an 11 percent jump last year. Meanwhile, Nordstrom said its selling, general, and administrative expenses increased by 5.3 percent.

One bright spot in the report was that the company's Rack unit saw net sales rise 16 percent to $95 million, as 20 new stores were added since the third quarter of 2012. The unit recorded same-store sales growth of 3.7 percent.

The company raised the lower end of its full-year earnings outlook to between $3.65 and $3.70 a share compared to its prior estimate of $3.60 to $3.70 a share.

Nordstrom shares dropped 1.4 precent to $62.57 in after-hours trading on Thursday, Nov. 14.

For more see:
This Nordstrom press release
This Wall Street Journal article

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