Nordstrom Q3 results exceed expectations
Nordstrom Inc. reported on Thursday high third-quarter sales that exceeded expectations.
The department store operator said net sales for the third quarter, which ended October 29, 2016, increased 7.2 percent to $3.5 billion, compared with net sales of $3.2 billion during the same period last year. Meanwhile, total company comparable sales for the third quarter increased 2.4 percent.
Still, the retailer reported a third quarter net loss of $10 million, compared with net earnings of $81 million and EBIT of $155 million, seen during the same period last year.
Moreover, third quarter results included a non-cash goodwill impairment of $197 million related to Trunk Club, which the Company acquired in 2014.
Consequently, current expectations for future growth and profitability are lower than initial estimates. Nordstrom now expects 2016 profits of $1.70 to $1.80 a share with sales increasing 3.5 percent.
In the Nordstrom Rack brand, which consists of Nordstrom Rack stores and Nordstromrack.com/HauteLook, net sales increased 10.1 percent and comparable sales increased 3.9 percent., while Sales at the company's full-price stores, improved 0.83 percent, with comparable sales increasing 0.5 percent.
Across U.S. full-line stores and Nordstrom.com, the top-performing merchandise categories were Women's Apparel and Men's Apparel.
"We've made considerable changes in the way we operate to improve the customer experience while increasing our productivity," says Blake Nordstrom, co-president, Nordstrom, Inc., in a news statement. "We are particularly proud of our team's efforts to align inventories and improve our operating efficiencies. These outcomes have positively impacted our operating results."
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