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."
Nordstrom, Inc. (Nordstrom) is a specialty fashion retail company that offers a broad range of fashion apparels, shoes, cosmetics, accessories, among others. The company offers a wide selection of bra...
Introduction Womenswear in the United States industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018)......
Functional textile specialist Sympatex Technologies is the latest company to join the Sustainable Apparel Coalition (SAC), with plans to use the group's sustainability measurement tool, the Higg Index...
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...
- Patagonia's CSR commitments re-shaping the sector
- Can Gap maintain its momentum minus Larsson?
- Brands back Cambodia industry-wide wage bargaining
- Can robotics redefine apparel manufacturing?
- Athletic players well positioned amid disruption
- Unions agree proposed Cambodia minimum wage
- New CEO may focus on Ralph Lauren supply chain
- Patagonia ramps up Fair Trade Certified apparel
- Nike collaborates on low-impact textile challenge
- Adidas unveils “game-changing” recycling project
- The future market potential for smart garments and e-textiles
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, and Contact Details
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Global market review of lingerie - forecasts to 2020
- Outdoor performance apparel: peaks, valleys, and green fields