- Prachi Singh |
Nordstrom reported earnings per diluted share for the second quarter ended July 29, 2017 of 0.65 dollar, while total company net sales increased 3.5 percent to 3.7 billion dollars and comparable sales increased 1.7 percent, compared with the same quarter last year. The company said, its anniversary sale, historically its largest event of the year, performed better than recent trends.
The company’s second quarter net earnings were 110 million dollars and EBIT was 217 million dollars or 5.8 percent of net sales, compared with net earnings of 117 million dollars and EBIT of 221 million dollars or 6.1 percent of net sales, during the same period in fiscal 2016.
Financial highlights of Q2 results
Nordstrom said, retail EBIT decreased 27 million dollars compared with the same quarter last year, primarily reflecting planned technology, occupancy and supply chain expenses supporting the Company's growth initiatives.
In the Nordstrom brand, including US and Canada full-line stores and Nordstrom.com, net sales when combined with Trunk Club, increased 2.4 percent and comparable sales increased 1.4 percent. The top-performing merchandise categories, the company said, were women's apparel and beauty. The east was the top-ranking US geographic region.
In the Nordstrom Rack brand, which consists of Nordstrom Rack stores and Nordstromrack.com/HauteLook, net sales increased 9.8 percent and comparable sales increased 3.1 percent. The east again was the top-ranking geographic region.
Retail gross profit, as a percentage of net sales, of 34.1 percent decreased 25 basis points compared with the same period in fiscal 2016. To date in fiscal 2017, the company opened six Nordstrom Rack stores and closed one full-line store.
Nordstrom updates FY17 outlook
Nordstrom expects total net sales to rise 4 percent against earlier outlook of between 3 to 4 percent rise, comparable sales are expected to remain flat on the last year. The company anticipates earnings per diluted share to range between 2.85 dollars to 3 dollars compared to earlier expectation of between 2.75 dollars to 3 dollars.
The company said, the 53rd week is expected to add approximately 200 million dollars to total net sales and approximately 0.02 dollar to 0.03 dollar to earnings per diluted share. The outlook assumptions for retail EBIT when compared with fiscal 2016 include increased occupancy expenses related to new stores (Nordstrom Rack, Canada and Manhattan flagship men's store) in addition to higher supply chain and technology costs.