- Prachi Singh |
Nordstrom earnings per diluted share for the third quarter ended October 28, 2017 were 0.67 dollar. The company said estimated reduction in earnings from several hurricanes affecting stores in Puerto Rico, Florida, and Texas was approximately 0.04 dollar. Third quarter net earnings were 114 million dollars and EBIT were 208 million dollars or 5.9 percent of net sales, compared with net loss of 10 million dollars and EBIT of 55 million dollars or 1.6 percent of net sales, during the same period in fiscal 2016.
Total company net sales increased 2 percent to 3.5 billion dollars and comparable sales decreased 0.9 percent, compared with the same quarter last year. The estimated lost sales impact from the hurricanes was approximately 20 million dollars or 60 basis points, Nordstrom added. Retail EBIT increased 137 million dollars compared with the same quarter last year, primarily reflecting a goodwill impairment charge of 197 million dollars in 2016. Credit EBIT increased 16 million dollars through the strategic partnership with TD Bank, due to credit card revenues growth of 25 percent.
Nordstrom’s third quarter update
In the Nordstrom brand, including US and Canada full-line stores and Nordstrom.com, net sales when combined with Trunk Club, decreased 1.2 percent and comparable sales decreased 1.9 percent. The top-ranking merchandise categories, the company said, were men's apparel and kids' apparel. The west 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 5.5 percent and comparable sales increased 0.8 percent. The west was again the top-ranking geographic region.
Retail gross profit, as a percentage of net sales, of 34.7 percent decreased 12 basis points compared with the same period in fiscal 2016. To date in fiscal 2017, the company opened 19 stores, relocated three stores and closed two stores.
Updating its annual outlook, Nordstrom said it expects net sales to increase about 4 percent and comparable sales to remain flat on the prior year. These expectations remain the same as the company’s earlier predications, however retail EBIT is not expected to range between 755 to 785 million dollars compared to prior outlook of 790 to 840 million dollars and credit EBIT is anticipated to be approximately 165 dollars against earlier expectation of around 145 million dollars. Earnings per diluted share are expected to be between 2.85 to 2.95 dollars against prior prediction of 2.85 to 3 dollars.