Nordstrom (NYSE:JWN) reported impressive growth in the latest quarter, led by the company's online and off-price divisions. Net sales of Nordstrom.com and Nordstrom Rack increased 20 and 13 percent, respectively.
Not to mention, the company's entrance into Canada, acquisition of Trunk Club and launch of NordstromRack.com drove one-third of the total sales growth for the quarter overall.
In total, Nordstrom reported a sales increase of 9.2 percent, making it the fourth consecutive quarter—one full year—of high, single-digit growth. Total comparable store sales increased 4.9 percent. And the company's anniversary sale, the largest event of the year, reached expectations.
Second quarter net earnings reached $211 million. Comparable sales increased 4.8 percent with cosmetics and women's apparel as top-performing categories.
Nordstrom.com's net sales increased 20 percent, driven largely by an expansion of merchandise selection. The online store, combined with HauteLook, increased net sales 50 percent for the second consecutive quarter. It seems the retailer's larger strategy to boost Nordstrom's e-commerce position and sales is working.
Equally as strong was Nordstrom's off-price business, which increased 16 percent over the same period last year. Nordstrom Rack's sales increased 13 percent, making 26 consecutive quarters of double-digit growth. Comparable sales increased 1.7 percent.
Nordstrom's loyalty program continues to contribute to successful results, as members shop three times more often and spend four times as much money than non-members. The company opened about 350,000 new accounts in the quarter, and sales from members increased 10 percent, representing 44 percent of all sales.
-See this Nordstrom press release
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