Published May 15, 2014
Nordstrom (JWN) reported stronger-than-expected first-quarter earnings on Thursday and said it is on the hunt for a financial partner for its credit card business, valued at $2 billion.
The department store has hired Goldman Sachs (GS) and Guggenheim Securities to evaluate a potential deal.
A credit card deal would allow Nordstrom to focus on executing its core retail and customer business, while providing it financial flexibility to pay off debt or invest in new business lines.
Nordstrom does not expect any such deal to have a material impact on jobs or existing operations. It will not provide updates on the search until a definitive agreement is reached.
Shares of Nordstrom were up 11% to $68.20 in after-hours trade
Meanwhile, the Seattle-based luxury department store reported net income of $140 million, or 72 cents a share, compared with a year-earlier profit of $145 million, or 74 cents.
The results topped Nordstrom’s internal expectations of up to 70 cents and surpassed average analyst estimates of 68 cents, according to a Thomson Reuters poll.
Revenue for the three months ended May 3 was $2.84 billion, up from $2.6 billion a year ago, just missing the Street’s view of $2.86 billion.
The company sees fiscal 2014 non-GAAP earnings between $3.75 and $3.90 a share, on same-store sales growth of 2% to 4%. The consensus is calling for full-year earnings of $3.85.