• Selling, general and administrative expenses increased 2 percent, or $11 million, compared to last year's first quarter. Retail square footage grew by 5 percent over last year due to the opening of seven full-line stores and one Rack store since May 2007. The company's focus on controlling expenses offset the costs associated with these new stores and increased bad debt expense. • In the first quarter of 2008, Nordstrom repurchased 4.6 million shares totaling $162 million, with an average price of $35.56. The company had $1.2 billion remaining on its existing authorization. First quarter share repurchases had a $0.01 impact on first quarter earnings per diluted share.
Expansion Update: During the first quarter, Nordstrom opened four full-line stores: • On February 15, 2008, a 172,000-square-foot store at Aventura Mall in Aventura, Fla.; • On March 7, 2008, a 211,000-square-foot store at the Ala Moana Center in Honolulu, Hawaii; • On March 28, 2008, a 143,000-square foot-store at the Burlington Mall in Burlington, Mass.; • On April 18, 2008, a 122,000-square-foot-store at The Mall at Partridge Creek in Clinton Township, Michigan.
Fiscal Year 2008 Outlook: Based on current business trends, the company has taken a more cautious approach to planning the remainder of 2008. The company is reducing operating expenses to mitigate the impact of lower sales expectations on earnings. For the fiscal year ending January 31, 2009, the company anticipates earnings per diluted share in the range of $2.65 to $2.80, decreased from the previous range of $2.75 to $2.90.
Second Quarter 2008 Outlook: For the second quarter of 2008, earnings per diluted share are expected in the range of $0.65 to $0.70, based on a same-store sales plan of -5 percent to -7 percent.
Due to an earlier start date of our Half-Yearly Sale for Women and Kids, the company expects May same-store sales to be 1500 - 1700 basis points above the quarterly plan and June same-store sales are expected to be 1300 - 1500 basis points below the quarterly plan.
The earlier start date does not impact the quarterly same-store sales expectations and July sales should be consistent with the second quarter rate.
20240830145952.gif)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
