Home / Knowledge / News / Fashion / Net earnings head southwards at Nordstrom Inc
Net earnings head southwards at Nordstrom Inc
14
Nov '08
Nordstrom, Inc. today reported net earnings of $71 million, or $0.33 per diluted share, for the third quarter ended November 1, 2008. For the same quarter last year, Nordstrom reported net earnings of $166 million and earnings per diluted share of $0.68.

Total sales in the third quarter were $1.81 billion, a decrease of 8.4 percent compared with sales of $1.97 billion during the same period in fiscal 2007. Third quarter same-store sales decreased 11.1 percent.

Results for the third quarter ended November 3, 2007, included a $20.9 million gain, net of tax, or $0.09 per diluted share, from the sale of the Faconnable business, which closed during the third quarter of fiscal 2007.

THIRD QUARTER HIGHLIGHTS:
Third quarter results include two non-comparable items that had a benefit to earnings per share of approximately $0.03. The company's third quarter earnings outlook did not include these items because they were not part of our view of ongoing operations.

Nordstrom, Inc. same-store sales decreased 11.1 percent for the quarter. Results in full-line stores continued to be challenging, as same-store sales decreased 15.6 percent in the quarter. Nordstrom Rack outperformed its off-price competition with a same-store sales increase of 3.6 percent. Sales for the Direct segment, which is nordstrom.com, increased 8.5 percent. Sales in all of our businesses were significantly impacted after the financial markets began to experience severe stress in mid-September.

Gross profit, as a percentage of sales, decreased 332 basis points compared with last year's third quarter as we responded to slower sales trends and the competitive environment with increased markdowns. Quarter-end inventory per square foot was down 3 percent from the prior year.

Selling, general and administrative expenses increased 2.6 percent, or $14 million, compared with last year's third quarter. The company's continued focus on expense control resulted in expense growth well below annual square footage growth of 5.7%.

In the third quarter of 2008, Nordstrom repurchased 0.8 million shares of stock totaling $26 million, with an average price of $30.82. The company suspended its share repurchase program in September. The company may resume the program in the future when economic conditions improve. Third quarter share repurchases had a minimal impact on third quarter earnings per diluted share.

CAPITAL INVESTMENT AND EXPANSION UPDATE:
The company's capital expenditures are expected to total approximately $350 million in fiscal year 2009, compared to approximately $510 million in fiscal year 2008. Given current economic conditions and delays in real estate development, the company now expects to relocate one full-line store and open 3 new full-line stores in 2009 and 4-5 new full-line stores in 2010.

On November 6, 2008 Nordstrom opened a new Rack store at Liberty Tree Mall in Danvers, Mass., onNovember 7, 2008 it opened a 77,000-square-foot full-line store at Waterside Shops in Naples, Fla. and today it opened a new Rack store at The Rim in San Antonio, Tex.

Fiscal Year 2008 Outlook:
For the fiscal year ending January 31, 2009, the company anticipates earnings per diluted share in the range of $1.87 to $1.97. Outlined in the table below are the company's expectations for fiscal year 2008:

Nordstrom


Must ReadView All

Courtesy: Andritz

Textiles | On 24th Sep 2018

'Strength of economy, demographics drive nonwovens demand'

The strength of the economy and demographic trends are the main...

ITC helps bolster Chinese investment in Ethiopian textile

Textiles | On 24th Sep 2018

ITC helps bolster Chinese investment in Ethiopian textile

Major Chinese textile firms are stepping up sourcing and investment...

No-deal Brexit to entail 'substantial costs' for UK: IMF

Textiles | On 24th Sep 2018

No-deal Brexit to entail 'substantial costs' for UK: IMF

A ‘no-deal’ Brexit on World Trade Organisation terms would entail...

Interviews View All

Rahul Bhadani, Looksgud

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Neel Sawhney, One Friday

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Kamlesh Vaghela, RK Textiles

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Liz Manning,

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Apurva Kothari,

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Harmeet Singh,

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Matthew Kolmes, Supreme Corporation

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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


September 2018

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

news category


Related Categories:

Advanced Search