Q1 affected by HauteLook acquisition, Nordstrom

16 May '11

4 min read

• Earnings before interest and taxes increased $53 million to $272 million, or 11.7 percent of total revenues, from $219 million, or 10.5 percent of total revenues, in last year's first quarter. This year's first quarter earnings before interest and taxes included charges of approximately $10 million related to HauteLook.

Fiscal Year 2011 Outlook

Nordstrom expects the impact of the purchase accounting charges related to the acquisition of HauteLook to be dilutive to fiscal 2011 earnings by approximately $0.20 per diluted share, including $0.04 per diluted share in the first quarter. Excluding primarily non-cash purchase accounting charges, HauteLook is expected to have breakeven earnings for fiscal year 2011.

Nordstrom is updating its outlook for fiscal 2011 to factor in its first quarter performance and the impact of HauteLook. The company expects earnings per diluted share in the range of $2.80 to $2.95. This outlook is $0.15 lower than the previous range of $2.95 to $3.10 due to the estimated impact of the HauteLook acquisition, partially offset by the impact of first quarter share repurchases.

Nordstrom Inc

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