Nordstrom, Inc. (JWN) Q3 Earnings Were Strong, Nordstrom Rack’s Weak
Nordstrom, Inc. (NYSE:JWN) had a mixed quarter as its earnings were strong, but certain segments of the retailer underperformed.
The apparel store chain reported a profit of 67 cents per share on an adjusted basis, topping the 63 cents per share that analysts polled by Thomson Reuters were expecting.
Revenue came in at $3.63 billion, growing 2.5% year-over-year and surpassing the $3.58 billion that Wall Street’s consensus estimate called for, per Thomson Reuters. Net sales also grew 2% year-over-year to $3.5 billion.
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Same-store sales were subpar for Nordstrom as they declined 0.9% year-over-year, while the Thomson Reuters estimate called for a slide of 0.2% for the company’s third quarter of fiscal 2017.
The company’s biggest miss came from its Nordstrom Rack concept that is designed to attract more thrifty customers in smaller stores. The retailer added 15 of this stores over the period, bringing the total of Rack stores up to 232, while also planning to add more in the U.S. and Canada next year.
Comparable sales at Nordstrom Rack fell 5% for the period. About 30% of its net revenue for the quarter came from Rack stores. The concept is most popular in western states.
The hurricanes that struck the U.S. during the third quarter caused Nordstrom to lose some consumers in times of need. The impact from these natural disasters are expected to reduce sales by $26 million and EPS by six cents.
JWN shares fell 1.3% after the bell following a 4.5% gain during regular trading hours.
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