Nordstrom, Inc. (NYSE:JWN) announced its quarterly results, to post higher third-quarter sales and beat expectation that were aided by its Anniversary Sale. That was a positive change following a string of bad results.
Shares, up 12% this year, rose 6.9% to $59.90 in after-hours trading Thursday.
Still, the retailer swung to a quarterly loss as it booked $197 million in charges from writing down Trunk Club, the men’s retailer Nordstrom bought in 2014 for $350 million.
Recently Nordstrom major rivals Macy’s Inc. and Kohl’s Corp. posted lower sales and comparable sales, a key retail metric that eliminates the sales impact of recently opened or closed stores. J.C. Penney Co. is scheduled to report third-quarter results on Friday.
Nordstrom now expects 2016 profits of $1.70 to $1.80 a share with sales increasing 3.5% and comparable sales remaining roughly flat from the year earlier. It had previously projected $2.60 to $2.75 a share, with sales increasing 2.5% to 4.5% and comparable sales ranging from a 1% decline to a 1% increase.
For the year ended Jan. 30, the Seattle retailer reported $3.15 a share in profit and $14.1 billion in sales, helped by a 2.7% increase in comparable sales. Nordstrom defines comparable sales as sales at stores open for at least a year and online sales.
During the 3 month period company sales surged 7% to $3.47 billion. Comparable sales surged 2.4%, in contrast with a 0.9% rise in the year-ago period and in-line with analysts’ forecasts. Eliminating the impact of the Anniversary Sale, Nordstrom said, comparable sales would have surged 0.4%.
Nordstrom sales at the company’s full-price stores, which account for the bulk of sales, rose 0.83%, with comparable sales going up 0.5%.
In the meantime, company’s sales at discount stores Nordstrom Rack and HauteLook jumped 10%, with comparable sales getting better 3.9%.
However Nordstrom, Inc. (NYSE:JWN) reported a drop of $10 million, or $0.6 a share, compared with a year-earlier profit of $81 million, or $0.42 a share. Excluding damage charges and other items, profit was $0.84 a share. Nordstrom revenue, comprising credit-card revenue, surged 6% to $3.54 billion.