Nordstrom reports net earnings of $126 mn in Q3 2019

Earnings before interest and taxes (EBIT) were $193 million, or 5.4 per cent of net sales, compared with $105 million, or 2.9 per cent of net sales, during the same period in fiscal 2018. Excluding a $72 million estimated non-recurring credit-related charge in 2018, EBIT margin expanded by approximately 50 basis points.

In full-price, net sales decreased 4.1 per cent compared with the same period in fiscal 2018. Off-price net sales increased 1.2 per cent. Total company digital sales grew 7 per cent and represented 34 per cent of the business.

Gross profit, as a percentage of net sales, of 34.3 per cent increased 100 basis points compared with the same period in fiscal 2018.

“Our market strategy is transforming our business model in how we’re serving customers. We have a unique mix of assets – full-price, off-price, stores, and online – and we are further linking our businesses to serve customers in new and differentiated ways. We achieved an important milestone with the opening of our New York City flagship store, significantly increasing our presence in the world’s top retail market. It’s a culmination of efforts across many teams, and we are grateful for their dedication and passion in bringing this store to life,” said Erik Nordstrom, co-president, Nordstrom, Inc.

“Our third quarter earnings exceeded expectations, demonstrating substantial progress in the delivery of our strategy and strength of our operating discipline. Through our customer focus, we drove broad-based improvement in top-line trends. The consistent strength of our inventory and expense execution contributed to increased profitability for the quarter.”

The company’s revised annual earnings per diluted share outlook stands at $3.30 to $3.50.

Nordstrom, Inc is a leading fashion retailer based in the US. Founded in 1901 as a shoe store in Seattle, today Nordstrom operates 381 stores in 40 states, including 116 full-line stores in the United States, Canada and Puerto Rico; 249 Nordstrom Rack stores; three Jeffrey boutiques; two clearance stores; six Trunk Club clubhouses; and five Nordstrom Local service concepts.

Fibre2Fashion News Desk (PC)