Nordstrom Inc reported preliminary sales of $762.2 million for the five-week period ending October 6, 2007, an increase of 4.1 percent compared to sales of $732.5 million for the five-week period ending September 30, 2006. Same-store sales increased 3.2 percent.
Preliminary quarter-to-date sales of $1.34 billion increased 7.6 percent compared to sales of $1.25 billion during the same period in 2006. Quarter-to-date same-store sales increased 4.6 percent.
Preliminary year-to-date sales of $5.69 billion increased 7.2 percent compared to sales of $5.31 billion during the same period in 2006. Year-to-date same-store sales increased 6.8 percent.
"We are pleased to report positive same store sales during a month that appeared to be challenging for our industry. While we did experience positive same store sales growth, we did not achieve our plan. In addition, we entered the quarter with inventory levels above our plan and our below-plan sales performance put additional pressure on inventory levels."
"We are taking immediate action to bring inventory levels in line, which will negatively impact merchandise margins for the remainder of the year," commented Blake Nordstrom, President of Nordstrom, Inc.
The company's below plan sales performance combined with its higher inventory position will lower expected earnings. As a result, the company now expects to deliver third quarter earnings per share of $0.50 to $0.53, which is below its prior outlook of $0.61 to $0.64. Additionally, third quarter same-store sales are now expected to increase two to four percent, below the four to five percent range announced at the end of the second quarter.
In keeping with its normal practice, the company will update fourth quarter and full year guidance on November 19 upon releasing third quarter earnings.
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