US: Nordstrom plans e-commerce push as Q4 surges
- Q4 net earnings up 20% to $284m from $236m
- Net sales rose 13.5% to $3.6bn from $3.2bn
- Direct same-store sales increase 31%
Upscale department store retailer Nordstrom Inc has posted a 20% jump in fourth-quarter profit, but said investments in e-commerce and expansion of its Nordstrom Rack stores would impact profit in the year ahead.
During the quarter, same-store sales increased 6.3%, with top-performing merchandise categories including men's, women's and kids' apparel.
This growth was surpassed by direct sales, however, which passed $1bn dollars this year for the first time, driven by a same-store sales increase of 31% in the fourth quarter.
"Direct sales growth continues to outpace the overall company, reflecting ongoing initiatives to improve the customer experience online," the retailer said.
Strong sales growth was also seen in another investment area, the discount Nordstrom Rack stores, where net sales surged 23% in the fourth quarter. Same-store sales increased 7.1% for the Rack, which is its largest fourth quarter increase in the last six years.
For the full year, the retailer, which operates 240 stores, achieved a 7.7% rise in net earnings to $735m, while sales surged 12.1% to $11.8bn. Full year same-store sales increased 7.3%, the company said.
But in fiscal 2013, capital expenditures are expected to climb to between $750m and $790m, almost doubling the $450m spent the year before.
For the upcoming fiscal year, Nordstrom expects net income of $3.65 to $3.80 per share on revenue up 4.5% to 6.5% . This compares with $3.56 per share in 2012.
Unveiling a new five-year plan to improve worker safety at the factories in Bangladesh that produce their clothing, North American brands and retailers were keen to stress the similarities between the...
Despite posting a higher profit in its second quarter, upscale US fashion retailer Nordstrom Inc has lowered its full-year forecast on an expected drop in sales....
Footwear retailers must match their strengths to the purchasing priorities of their target customers if they want to engage them in the shopping process, according to new research....
A group of leading North American retailers and brands - led by Wal-Mart and Gap - have committed more than $142m in funding and low interest loans to help improve factory safety conditions for garmen...
- Under Armour defends questions over strategy
- Cheap polyester contributes to cotton import shift
- TPP trade pact in milestone signing by 12 nations
- Combating the new normal – 10 trends for 2016
- Who has pledged to ban the use of angora?
- Bangladesh factory fire renews worker safety fears
- Syrian refugee children found in Turkish factories
- China factory activity continues to deteriorate
- Key Bangladesh safety issues still not fixed
- Southeast Asia – a strategic sourcing review
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Wearable technology: The future market potential for smart garments and e-textiles
- Global market review of denim and jeanswear – forecasts to 2021
- Wearable Technology Market by Product, Application, Type, & Geography - Global Forecast to 2020
- E-Textiles: Electronic Textiles 2014-2024