Nordstrom declares decrease in June comparable store sales
11 Jul '08
2 min read
Nordstrom Inc reported preliminary sales of $731 million for the five-week period ended July 5, 2008, a decrease of 14.1 percent compared to sales of $851 million for the five-week period ended July 7, 2007.
Same-store sales decreased 18.6 percent. The company's June sales results were negatively impacted by the shift of the Half-Yearly Sale for Women and Kids into May.
The company believes that quarter-to-date results, which combine the results of May and June 2008, provide the most accurate view of recent sales trends.
Preliminary quarter-to-date sales of $1.45 billion decreased 2.8 percent compared to sales of $1.49 billion during the same period in 2007. Quarter-to-date same-store sales decreased 5.9 percent.
Preliminary year-to-date sales of $3.33 billion decreased 3.4 percent compared to sales of $3.44 billion for the same period in 2007. Year-to-date same-store sales decreased 6.2 percent.
Although second quarter-to-date sales results were consistent with the company's expectations, the competitive and economic environment remains challenging.
The company experienced higher levels of markdowns than in past years as it cleared spring merchandise during the Half-Yearly Sale for Women and Kids in May and the Half-Yearly Sale for Men in June.
Due to lower gross profit margins, the company now expects that earnings for the current quarter will be at the low end or slightly below its previously announced earnings per share outlook of 65 to 70 cents.
The company's annual Anniversary Sale starts on July 18th and has traditionally been enthusiastically received by Nordstrom customers. As a result, July has historically been the second-largest sales month of the year and will be an important part of the quarter.
The company will release July sales results on August 7th and second quarter earnings results on August 14th. In keeping with its normal practice, the company will update third quarter and full-year outlook upon releasing second quarter earnings on August 14th.
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