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Nordstrom same-store sales for May up 6.3%

07 Jun '07

2 min read

Nordstrom Inc reported preliminary sales of $637.8 million for the four-week period ending June 2, 2007, an increase of 6.1 percent compared to sales of $600.9 million for the four-week period ending May 27, 2006. Same-store sales increased 6.3 percent.

Preliminary year-to-date sales of $2.59 billion increased 8.5 percent compared to sales of $2.39 billion during the same period in 2006. Year-to-date same-store sales increased 8.7 percent.

The 53rd week in fiscal 2006 created a timing shift in the 4-5-4 calendar for fiscal 2007. The month of May in fiscal 2007 began one week later than in fiscal 2006. This timing shift negatively impacted reported sales for May 2007.

Share Repurchase:
On May 23, 2007, Nordstrom entered into an accelerated share repurchase agreement and initially received 5.4 million shares of Nordstrom common stock. The final amount of shares delivered under the agreement may increase based on the volume weighted average price of Nordstrom shares over a set time period. These shares were repurchased under the remaining balance of the company's current $1 billion stock repurchase authorization.

Second Quarter 2007 Sales Outlook:
Our updated outlook for the 2007 second quarter same-store sales rate is for an estimated two to three percent increase. This range reflects a combination of the actual rate for May with the planned same-store sales rates for June and July.

We anticipate the month of June to be negatively impacted by the timing shift of the fiscal 2006 53rd week. When compared to the planned same-store sales rate of two to three percent for the 2007 second quarter, the monthly same-store sales rate in June is expected to be below the anticipated quarterly rate.

For the month of July, the same-store sales rate is expected to be in line with the anticipated quarterly rate.

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