NEW YORK (AP) -- Nordstrom Inc. reported a 15 percent increase in third-quarter net income on Thursday, fueled by strong demand for men's shoes, men's clothing and children's fashions.
But the upscale retailer's results missed Wall Street estimates, as the company invested more money in enhancing its rewards program for shoppers. Investors pushed down Nordstrom's stock 2.5 percent in after-hour trading. The company released its results after regular trading closed Thursday.
Still, Nordstrom's solid quarter is encouraging news as its heads into the holiday season. The results show that affluent shoppers are still spending. However, armed with smartphones and tablets, they're demanding more convenience and faster service.
During a conference call with investors Thursday, Blake Nordstrom, the retailer's president, discussed the importance of customer service.
QUESTION: How important is customer service in this new digital era?
ANSWER: As a company, we aspire to continually improve the customer experience. There's no finish-line when it comes to this subject, as our customers have access to a growing number of choices, with expectations increasingly centered on speed and convenience.
Their expanding view of service and our desire to increase our relevance with existing and new customers are creating multiple growth opportunities whether in stores or through technology. Just as we're striving to provide a differentiated experience in our stores, we're also working to achieve this in e-commerce.