US: Nordstrom Q4 earnings tumble 5.6%
- Q4 net profit down 5.6%
- Net sales remain flat
- FY EPS guidance of $3.75-$3.90
Upscale fashion retailer Nordstrom has booked a drop in fourth-quarter earnings and guided for full-year profit below analyst expectations.
Earnings dropped 5.6% to US$268m in the three months ended 1 February, from $284m in the year ago period. The retailer increased markdowns in response to heightened promotional activity during the quarter and experienced higher occupancy costs related to expansion of its Rack stores.
Net sales remained flat at $3.6bn, while same-store sales were up 2.6% compared with last year's increase of 6.3%.
Nordstrom same-store sales, which consist of the full-line and direct businesses, increased 2.2% versus last year's 6.1% increase.
Despite the earnings decline and flat sales, RBC Capital Markets analyst Howard Tubin said it was a "standout performance" in the currently difficult retail environment.
"The positive comp was driven by strength at Rack and DTC. While these divisions drive an outsized portion of the company's investment spending, the investments appear to be paying off."
Nordstrom has guided profit per share for the full year to be in the range of $3.75 to $3.90. This comes in below the average of 28 analysts' estimates compiled by Bloomberg, of $4.07.
The company said it expects its planned entry into Canada to continue to be dilutive to earnings in its new fiscal, primarily due to ongoing infrastructure investments and pre-opening costs.
Nordstrom, Inc. - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offering...
Nordstrom, Inc. (JWN) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled by Globa...
Apparel, Accessories & Luxury Goods in the United States industry profile provides top-line qualitative and quantitative summary information including: market size (value 2008-12, and forecast to 2017...
With a large population and high income per head, demand for apparel in the USA is huge -- amounting to nearly US$300 bn during 2012. This has facilitated sustained growth of a number of giant retaile...
- Impact of the TPP on the US textile industry?
- Cambodia's future outsourcing prospects uncertain
- JC Penney emphasises new merchandising strategy
- Crystal Group nurtures its caring culture
- Hazardous chemical removal a key industry issue
- Vietnam proposes 15% rise to regional minimum wage
- Cambodia garment workers “dying on the job”
- Avery Dennison forms JV with Ningbo Shenzhou
- Hong Kong's Li & Fung reports "solid" H1
- Accord and Alliance discord over inspections
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Textile Wholesaling in the UK - Industry Market Research Report
- Global market review of denim and jeanswear – forecasts to 2020
- Survey of the European Fabric Fairs: Spring/Summer 2015
- Prospects for the Textile and Clothing Industry in Turkey