- Prachi Singh |
Nordstrom said that its first quarter earnings were in-line with expectations. Earnings per diluted share for the quarter were 0.37 dollar against 0.26 dollar reported by the company in the same quarter, last year. Excluding non-operational charges of 30 million dollars in 2016 and 18 million dollars of debt refinancing costs in 2017, earnings per diluted share increased 19 percent in the first quarter.
Total company net sales increased 2.7 percent and comparable sales decreased 0.8 percent, compared with the same quarter last year. Online sales were 24 percent of total net sales, driven by 11 percent growth at Nordstrom.com and 19 percent at Nordstromrack.com/HauteLook. The company reiterated its annual outlook for earnings per diluted share of 2.75 dollars to 3 dollars, net sales increase of 3 to 4 percent and approximately flat comparable sales.
Q1 net earnings increased to 63 mn dollars
First quarter net earnings were 63 million dollars and EBIT was 151 million dollars or 4.6 percent of net sales, compared with net earnings of 46 million dollars and EBIT of 106 million dollars or 3.3 percent of net sales, during the same period in fiscal 2016.
Retail EBIT increased 25 million dollars compared with the same quarter last year. Excluding non-operational charges in 2016, Retail EBIT decreased 5 million dollars or 3.7 percent.
Nordstrom brand sales decreased 1.7 percent
In the Nordstrom brand, including US and Canada full-line stores and Nordstrom.com, net sales when combined with Trunk Club, decreased 1.7 percent and comparable sales decreased 2.8 percent. Across US full-line stores and Nordstrom.com the top-performing merchandise categories were men's and women's 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 8.7 percent and comparable sales increased 2.3 percent. The west was again the top-ranking geographic region.
Retail gross profit, as a percentage of net sales, of 34.3 percent increased 7 basis points compared with the same period in fiscal 2016. This reflected improved gross margin performance in the full-price business, partially offset by increased markdowns in the off-price business.
To date in fiscal 2017, the company opened six Nordstrom Rack stores and closed one full-line store.