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Nordstrom Soars After Strong Results, Bucking Retail Concerns

Kim Bhasin
Nordstrom Soars After Strong Results, Bucking Retail Concerns

(Bloomberg) -- Nordstrom Inc. rose in late U.S. trading after quarterly sales and profit beat analysts’ predictions, bucking the weakness in the department-store sector going into the crucial holiday season.

Revenue dropped 2% to $3.67 billion in the fiscsal third quarter, compared with the average estimate of $3.58 billion. The retailer also narrowed the range of its full-year earnings-per-share forecast. For more details, see here.

Key Insights

The results are a bright spot in the department-store industry after Kohl’s Corp. and Macy’s Inc. cut their outlooks this week.Nordstrom’s new Manhattan flagship, a 320,000-square-foot store opened last month, drew reflected a strong customer response with 85,000 visits during the first weekend. Executives have called the new location the biggest bet in Nordstrom’s 118-year history.The retailer is trying to attract shoppers into its stores through non-traditional means, including a partnership with fashion rental service Rent the Runway and filling its shops with more experiences like restaurants. The flagship New York store has six food and drink spots throughout its selling floors.

Market Reaction

Nordstrom shares jumped 9% in after-hours trading. They had dropped 26% this year through Thursday’s close.

Get More

For the company statement, click here.

To contact the reporter on this story: Kim Bhasin in New York at kbhasin4@bloomberg.net

To contact the editors responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Lisa Wolfson, Cécile Daurat

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