NEW YORK, NY / ACCESSWIRE / August 20, 2018 / Nordstrom was soaring to a brand new high after its second quarter earnings report while shares of DSW plummeted almost 5% after receiving a downgrade from Susquehanna Financial Group.
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Nordstrom, Inc. shares closed up 13.20% on about 17 million shares traded on Friday. The stock soared to a brand new high of $59.25 after the retailer reported stellar second quarter earnings. Nordstrom earned $162 million, or 95 cents a share in the quarter with revenues of $4.07 billion. Analysts had been expecting earnings per share of 86 cents and revenue of $3.97 billion. Internet sales saw a growth of 50% quarter on quarter and hit $897 million. Analysts had been expecting just $876 million. Overall digit sales saw a growth and represented 34% of second quarter sales. This was up from 29% in the year ago quarter. On the first day of Nordstrom's anniversary sale, the company "achieved record digital demand," surpassing a previous peak by 80%. Co-President Blake Nordstrom said during the earnings call, "Our second quarter results reflect our progress in achieving our long-term financial commitments. In the second quarter, we reported a total sales increase of approximately 7% and earnings per share of $0.95. We remain on track for 2018 to be an inflection point for profitable growth."
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DSW Inc. shares were down 4.85% at the close on Friday with almost 4 million shares traded. The shoes and fashion accessories company saw its shares fall after receiving a downgraded to negative from neutral at Susquehanna Financial Group. The firm, which also cut its price target from $26 to $22, cited higher costs and margin pressure. Susquehanna analysts led by Sam Poser think the company's new loyalty program will negatively affect margins. The loyalty program offers free shipping on all orders rather than just those purchases of $35 or more. The firm's note read, "Proprietary checks indicate DSW will likely purchase Camuto Group's China sourcing, and through doing so, become the licensee of Camuto's footwear brands. Such a deal goes against DSW's core competency as a retailer." The firm also expects the acquisition of Town Shoes earlier this year to hurt the company's fiscal 2018 outlook. DSW Inc. will be releasing its Second Quarter 2018 results on Tuesday, August 28, 2018 at 8:30 a.m. ET.
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