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Nordstrom believes growth could moderate in H2 of 2010
23 Feb '10
4 min read
• Credit selling, general, and administrative expenses increased $16 million compared with last year's fourth quarter. The majority of the increase reflects higher bad debt expense. Based on fourth quarter trends and continuing uncertainty regarding the overall economic environment, the company increased its reserve for bad debt by $20 million in the quarter.
Full Year Results
For the fiscal year ended January 30, 2010, net earnings were $441 million, an increase of 10 percent compared with net earnings of $401 million for the fiscal year ended January 31, 2009. Earnings per diluted share for the same periods were $2.01 and $1.83, respectively.
Full year same-store sales decreased 4.2 percent compared with fiscal 2008. Net sales for the year were $8.26 billion, a decrease of 0.2 percent compared with prior year net sales of $8.27 billion.
Expansion Update
In May, Nordstrom also plans to relocate a full-line store at Los Cerritos Center in Cerritos, California which will replace a store built in 1981.
Fiscal Year 2010 Outlook
Nordstrom is planning for 2010 based on recent business trends but with continuing caution about the economic environment and its impact on the customer. Although there was meaningful improvement in the latter half of 2009 that could continue in the first half of 2010, the company believes growth could moderate in the second half of 2010 as it overlaps with the improving trends from the prior year.
The company plans to continue to align the key drivers of its business (inventory, expenses, working capital and capital expenditures) to improve profitability, enhance free cash flow, increase return on invested capital and maintain a healthy balance sheet. For the 2010 fiscal year, Nordstrom expects same-store sales to increase 2.0 to 4.0 percent, which yields earnings per share in the range of $2.35 to $2.55 for the full year.
Full Year Results
For the fiscal year ended January 30, 2010, net earnings were $441 million, an increase of 10 percent compared with net earnings of $401 million for the fiscal year ended January 31, 2009. Earnings per diluted share for the same periods were $2.01 and $1.83, respectively.
Full year same-store sales decreased 4.2 percent compared with fiscal 2008. Net sales for the year were $8.26 billion, a decrease of 0.2 percent compared with prior year net sales of $8.27 billion.
Expansion Update
In May, Nordstrom also plans to relocate a full-line store at Los Cerritos Center in Cerritos, California which will replace a store built in 1981.
Fiscal Year 2010 Outlook
Nordstrom is planning for 2010 based on recent business trends but with continuing caution about the economic environment and its impact on the customer. Although there was meaningful improvement in the latter half of 2009 that could continue in the first half of 2010, the company believes growth could moderate in the second half of 2010 as it overlaps with the improving trends from the prior year.
The company plans to continue to align the key drivers of its business (inventory, expenses, working capital and capital expenditures) to improve profitability, enhance free cash flow, increase return on invested capital and maintain a healthy balance sheet. For the 2010 fiscal year, Nordstrom expects same-store sales to increase 2.0 to 4.0 percent, which yields earnings per share in the range of $2.35 to $2.55 for the full year.
Nordstrom Inc
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