Nordstrom 3Q profit slips, but tops expectations


| Zoom

SEATTLE (AP) - Luxury retailer Nordstrom's third-quarter net income fell almost 7 percent as an anniversary sale that usually boosts sales was held earlier in the year.

But the results on Thursday beat expectations and the company raised the lower end of its full-year earnings guidance.

The news comes as retailers prepare for the all-important holiday season, which can account for up to 40 percent of annual sales. So far, retailers' outlooks for the season have been mixed. Kohl's Inc. and Wal-Mart Stores Inc. both lowered their forecast for the season, but Macy's Inc. gave a bullish view on the holidays.

Overall the National Retail Federation, the nation's largest retail trade group, expects an increase of 3.9 percent to $602.1 billion in holiday sales. There are six fewer shopping days this holiday season but the company said that should not affect sales.

"We've looked at this over the years and years where we've had more days and years where we've had less days and we tend to see that the overall shopping bag is relatively the same," said CFO Mike Koppel. "So we planned accordingly and we expect a good holiday season."

Nordstrom Inc.'s net income for the three months ended Nov. 2 fell to $137 million, or 69 cents per share, down from $146 million, or 71 cents per share, a year ago.

Revenue rose 3 percent to $2.88 billion from $2.81 billion last year. Revenue in stores open at least one year, a key retail metric, rose 0.1 percent. Top sellers included makeup, women's clothing and women's shoes.

Analysts surveyed by FactSet expected earnings of 67 cents per share on revenue of $2.87 billion.

The company adjusted its fiscal 2013 net income guidance to $3.65 to $3.70 per share, from prior guidance of $3.65 to $3.70 per share. Analysts expect earnings of $3.68 per share.

Nordstrom expects revenue to rise 3.5 percent, versus prior guidance of 3 percent to 4 percent, implying revenue of $12.4 billion. Analysts expect $12.58 billion.

Its shares fell $1.08 to $62.35 in after-hours trading.


(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Top Stories

  • Dam Difficult Decision
    November is the wettest month & that means flooding could be just days or weeks away

  • Fact Check
    Jason Rantz says actually, there are laws to address negligent gun owners
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.