- Prachi Singh |
Nordstrom reported earnings per diluted share of 0.66 dollar for the first quarter ended May 2, 2015, which were in-line with company expectations, compared with 0.72 dollar for the first quarter ended May 3, 2014. Total company net sales increased 9.8 percent and comparable sales increased 4.4 percent, compared with the same period last year.
First quarter results reflected store and online growth including, two full-line store openings in Ottawa, Ontario, its second store in Canada, and in San Juan, Puerto Rico, 10 Nordstrom Rack store openings supporting its accelerated store expansion, over 50 percent sales growth in Nordstromrack.com and HauteLook, on a combined basis, driven by the launch of Nordstromrack.com in the second quarter 2014. Based on first quarter performance, the company reiterated its annual outlook for earnings per diluted share of 3.65 dollars to 3.80 dollars, net sales increase of 7 to 9 percent and comparable sales increase of 2 to 4 percent.
First quarter net earnings were 128 million dollars compared with 140 million dollars during the same period last year. Earnings before interest and taxes were 245 million dollars, or 7.9 percent of net sales, compared with 265 million dollars, or 9.3 percent of net sales, for the same quarter last year. The impact of the Trunk Club acquisition and ongoing entry into Canada reduced earnings before interest and taxes by 19 million dollars.
This year, the company announced plans to open a full-line store in Norwalk, Connecticut in 2018 and Nordstrom Rack stores in Virginia Beach, Virginia, Novi, Michigan and Pittsburgh, Pennsylvania in 2016. During fiscal 2015, the company plans to open a total of five full-line stores, including two in Canada, and 27 Nordstrom Rack stores. Earnings per diluted share growth in the second quarter is expected to be below the full-year outlook range of a 2 percent decrease to a 2 percent increase, primarily due to the ongoing entry into Canada and the acquisition of Trunk Club in the third quarter 2014.