US: Nordstrom Q1 beats analyst expectations
- Q1 earnings drop 3.4% but beat expectations
- Gross margin down 120 bps
- Sales climb 6.8%
Upscale fashion retailer Nordstrom has reported first-quarter results that beat analyst expectations thanks to a comp store sales increase and tight expense management.
Earnings for the quarter ended 3 May, amounted to US$140m, or $0.72 per share, a drop of 3.4% on $145m a year earlier. The decline was due to technology investments and infrastructure costs related to the firm's upcoming entry into Canada.
Nonetheless, this was above Stifel analyst estimates of $0.04 per share.
Gross margin decreased 120 bps, in part due to increased markdowns in response to the heightened promotional environment.
Net sales, however, climbed 6.8% to $2.8bn, while comparable store sales increased 3.9%.
Stifel analyst Richard Jaffe said: "Nordstrom delivered a strong 1Q despite the challenging environment and inclement weather. More importantly, Nordstrom management reiterated their view of the future and its ongoing investments.
"Management has taken a long-term view, recognising that the retail world is changing rapidly and dramatically, and has adjusted its growth investments to be consistent with the changing environment."
Introduction Menswear in the United States industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018). ......
Apparel Retail in United States industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2009-13, and forecast to 2018). The profile...
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