Home / Knowledge / News / Fashion / Nordstrom Rack outperforms most of its off-price competitors
Nordstrom Rack outperforms most of its off-price competitors
15
May '09
Nordstrom Inc reported net earnings of $81 million, or $0.37 per diluted share, for the first quarter ended May 2, 2009. For the same quarter last year, Nordstrom reported net earnings of $119 million, or $0.54 per diluted share.

Included in the 2009 first quarter results was a benefit of approximately $12 million, or $0.06 per diluted share, related to the closure of the company's 2007 federal tax return audit. Excluding this benefit, 2009 first quarter net earnings were $69 million, or $0.31 per share.

Net sales in the first quarter were $1.71 billion, a decrease of 9.2 percent compared with sales of $1.88 billion during the same period in fiscal 2008. First quarter same-store sales decreased 13.2 percent compared with the same period in fiscal 2008.

FIRST QUARTER SUMMARY
In the first quarter, overall business trends were consistent with the company's business plans. The company planned sales based on recent trends and maintained its discipline with respect to inventory and expenses, allowing it to exceed earnings plans.

Full-line same-store sales decreased 16.5 percent. Sales for Nordstrom Direct were approximately flat. Top-performing merchandise categories were dresses, junior women's apparel and cosmetics, while the South and Mid-Atlantic regions were the top-performing geographic areas.

Nordstrom Rack outperformed most of its off-price competitors with a same-store sales increase of 1.2 percent.
Gross profit, as a percentage of net sales, decreased 215 basis points compared with last year's first quarter. Approximately half of the decline was due to the impact of fixed buying and occupancy costs as a percentage of reduced sales. The company was effective in aligning its inventory levels with its current sales trends. Quarter-end total inventory per square foot was down 12 percent from the prior year, which is better than total company sales trends.

Retail selling, general and administrative expenses decreased $46 million compared with last year's first quarter. Excluding $17 million in additional expenses from stores opened since the first quarter of 2008, retail selling, general and administrative expenses decreased $63 million. The company opened 6 full-line stores and 10 Nordstrom Rack stores since the first quarter of 2008, increasing retail square footage by 1.2 million or 5.7 percent.

Credit selling, general and administrative expenses increased $42 million compared with last year's first quarter due to higher charge-offs and additions to reserves for bad debt.

EXPANSION UPDATE
On March 6, 2009, Nordstrom relocated and opened a full-line store at Fashion Place in Murray, Utah. On March 27, 2009, it opened a 143,000-square-foot full-line store at Cherry Hill Mall in Cherry Hill, New Jersey, and on April 17, 2009, it opened a 143,000-square-foot full-line store at Northshore Mall in Peabody, Massachusetts.

During the first quarter of fiscal 2009, Nordstrom also opened four Nordstrom Rack stores at Bergen Town Center in Paramus, New Jersey, Park Lane in Dallas, Texas, The Commons at Southtowne in Sandy, Utah and Orland Park Place in Orland Park, Illinois. On May 7, 2009, Nordstrom opened a Nordstrom Rack store at Ravenswood 101 in East Palo Alto, California.

FISCAL YEAR 2009 OUTLOOK
Based on first quarter performance, the company is revising its outlook for the 2009 fiscal year to reflect increases in gross profit and credit card revenue, partly offset by an increase in bad debt expense. For the 2009 fiscal year, Nordstrom expects earnings per diluted share in the range of $1.25 to $1.50, increased from the previous range of $1.10 to $1.40.

Nordstrom Inc


Must ReadView All

Courtesy: Pexels

Fashion | On 23rd Jun 2018

Nigerian bank launches N1 bn fund for fashion entrepreneur

Nigeria’s Bank of Industry has set aside 1 billion Naira (N) to...

Courtesy: Tayal

Textiles | On 23rd Jun 2018

Tayal textile factory in Algeria starts exports to Turkey

Algeria’s largest textile factory, the joint Algerian-Turkish company ...

Courtesy: Manhattan Beachwear

Fashion | On 23rd Jun 2018

Manhattan Beachwear in global partnership with BCBG Group

Manhattan Beachwear, the largest swimwear manufacturer in the US, has ...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search