Nordstrom 4Q Sales, Outlook Disappoint; Shares Slump

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Published February 21, 2013

| FOXBusiness

Nordstrom (JWN) revealed a stronger-than-expected 20% increase in fourth-quarter earnings Thursday. However, its shares slid 3% after hours on disappointing sales and a lackluster outlook.

Looking toward fiscal 2013, Nordstrom is anticipating earnings in the range of $3.65 to $3.80 a share on sales growth of 4.5% to 6.5%. The outlook came in below the consensus view of $3.97 a share.

Revenue for the three-month period ended Feb. 2 climbed 13.5% on a year-over-year basis to $3.6 billion, but just missed the Street’s view of $3.7 billion. 

Shares of Nordstrom slid close to 3% in extended trading to $53.

The Seattle-based luxury department store posted fourth-quarter net earnings of $284 million, or $1.40 a share, compared with $236 million, or $1.11 a share a year ago.

The results topped average analyst estimates of $1.34 in a Thomson Reuters poll

Same-store sales, a key growth measure for retailers measuring sales at stores open longer than a year, were up 6.3%, and Nordstrom said general expenses as a percentage of sales slumped by 45 points.

Meanwhile, Nordstrom Rack, the retailer’s discount chain that opened 12 new stores in calendar 2012, saw its sales grow 23%.

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