Nordstrom's Q1 net sales rise 5.8 percent

Nordstrom, Inc. reported earnings per diluted share for the first quarter ended May 5, 2018 of 0.51 dollar compared with 0.37 dollar last year, which included a debt refinancing charge of 0.06 dollar. Total company net sales increased 5.8 percent for the quarter to 3,469 million dollars, which the company said, reflected an increase of approximately 250 basis points primarily due to the shift of a Nordstrom rewards loyalty event into the first quarter relative to the second quarter last year. Comparable sales increased 0.6 percent.

During the quarter, Nordstrom opened a Nordstrom men's store in New York City and expanded its presence in Canada with the introduction of Nordstrom Rack, opening three stores in the Toronto and Calgary markets.

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Nordstrom’s first quarter result highlights

The company’s digital sales increased by 18 percent in the first quarter, compared with the same period in 2017 and represented 29 percent of first quarter sales, up from 25 percent a year ago. Sales from Nordstrom Rewards customers represented 53 percent of first quarter sales, compared with 47 percent a year ago.

First quarter net earnings were 87 million dollars compared with 63 million dollars during the same period in fiscal 2017. EBIT reached 153 million dollars or 4.4 percent of net sales, compared with 151 million dollars or 4.6 percent of net sales, during the same period in fiscal 2017.

In Full-price, which consists of Nordstrom U.S. full-line stores, Nordstrom.com, the Canadian operation, Trunk Club, Jeffrey and Nordstrom Local, comparable sales increased 0.7 percent. The top-ranking merchandise categories were kids' and men’s apparel. In off-price, which consists of Nordstrom US Rack stores, Nordstromrack.com/HauteLook and Last Chance clearance stores, comparable sales increased 0.4 percent.

Gross profit, as a percentage of net sales, of 34.1 percent decreased 21 basis points compared with the same period in fiscal 2017. To date in fiscal 2018, the company opened eight stores and closed one store.

For fiscal 2018, Nordstrom expects net sales to range between 15.2 to 15.4 billion dollars, comparable sales rise between 0.5 percent to 1.5 percent, EBIT to range between 895 to 940 million dollars against prior outlook of 885 to 940 million dollars and earning per diluted share between 3.35 dollars to 3.55 dollars compared to earlier outlook of between 3.30 dollars to 3.55 dollars.

Picture credit:Nordstrom