Nordstrom profit falls 5 percent on higher costs

Fashion specialty retailer Nordstrom Inc. said Thursday after the markets closed that its fourth quarter profit fell 5 percent from last year, as higher costs and expenses more than offset a 9 percent increase in revenue.

The company's quarterly earnings per share also came in below analysts' expectations, but its quarterly revenue just managed to beat analysts' forecast. At the same time, the company forecast fiscal year 2015 earnings below analysts' current consensus estimate.

Nordstrom shares are currently losing 0.44 percent in after hours trading after closing the day's regular trading session at 77.14 dollars, down 91 cents or 1.17 percent. The shares trade in a 52-week range of 58.26 dollars to 80.54 dollars.

Nordstrom operates 292 stores, including 116 full-line stores in the United States and one in Canada; 167 Nordstrom Racks; two Jeffrey boutiques; and one clearance store. For the fourth quarter ended January 31, 2015, the Seattle, Washington-based company reported net income of 255 million dollars or 1.32 dollars per share, compared to 268 million dollars or 1.37 dollars per share for the year-ago quarter.

On average, 28 analysts polled by Thomson Reuters expected the company to earn 1.35 dollars per share for the fourth quarter. The company completed its 357 million dollars acquisition of Trunk Club in August. The acquisition reduced fourth quarter earnings before interest and taxes by 11 million dollars.

Net sales for the fourth quarter rose 9 percent to 3.94 billion dollars from 3.61 dollars billion a year earlier, while total revenue for the quarter also increased 9 percent to 4.04 billion dollars from 3.71 billion last year. Twenty-four analysts had a consensus revenue estimate of 4.01 billion dollars for the fourth quarter.

Total company same-store sales for the fourth quarter increased 4.7 percent. Nordstrom same-store sales, which consist of the full-line and Direct businesses, grew 4.5 percent. Top performing merchandise categories included cosmetics, accessories and men's apparel. Gross profit, as a percentage of net sales, decreased 53 basis points compared with the same period last year, mainly due to increased markdowns at Nordstrom Rack.

Looking forward to fiscal year 2015, the company forecasts net sales growth of 7 percent to 9 percent and earnings of 3.65 dollars to 3.80 dollars per share. Analysts currently expect the company to earn 4.11 dollars per share on revenue growth of 8.10 percent for the fiscal year 2015. (DPA)