Shares of Nordstrom (NYSE:JWN) climbed more than 4% Friday morning amid enthusiasm for the high-end department stores earnings beat and new government data showing U.S. retail sales increased in July despite increased economic and market turbulence.
Continue Reading Below
Reporting after Thursdays closing bell, the Seattle-based retailer said it earned $175 million, or 80 cents a share, last quarter, compared with a profit of $146 million, or 66 cents a share, a year earlier. Analysts had called for EPS of 75 cents.
Total revenues received a 12% bump to $2.81 billion. Same-store sales climbed 7.3% and gross margins expanded to 38.7% from 37.8%.
In a show of confidence despite, Nordstrom upped its 2011 financial outlook. The company now sees 2011 EPS of $2.95 to $3.10 on a 4% to 6% rise in same-store sales. Analysts had been calling for EPS of $3.05 on $10.36 billion in revenue.
Separately, the Commerce Department said U.S. retail sales grew by 0.5% in July, matching consensus estimates from economists. Excluding volatile auto sales, retail sales also gained 0.5%, easily exceeding expectations for a rise of just 0.3%.
Wall Street bid Nordstroms stock solidly higher in Fridays premarkets. Nordstrom was recently up 4.42% to $44.20, outpacing a 0.68% gain on the S&P 500 futures. Coming into the day, the stock was flat on the year, but down more than 15% over the past month.