Nordstrom Shares Soar as Earnings Beat Estimates
Upscale department store chain Nordstrom reported quarterly earnings that topped a lowered forecast it gave last month, sending its shares up more than 10 percent in extended trade.
The retailer said net earnings for the third quarter ended Nov. 3 rose 22 percent to $165.7 million, or 68 cents per share, from $135.7 million, or 52 cents per share, a year earlier.
Nordstrom shares on Monday rose as much as 11.73 percent in after-hours trade, having closed regular market hours down 6.12 percent on the New York Stock Exchange.
Excluding a gain from the sale of its Faconnable business and adjusting for a difference in timing periods compared with a year ago and a debt-related securitization deal, Nordstrom earned 57 cents a share, topping analysts' average target of 52 cents per share, according to Reuters Estimates.
Nordstrom had cut its third-quarter outlook to a range of 50 cents to 53 cents a share in October from a prior forecast of 61 cents to 64 cents. It said at the time that same-store sales were expected to rise 2 percent to 4 percent in the quarter, down from an earlier expectation of 4 percent to 5 percent growth.
Same-store sales, which track sales at stores open at least a year, rose 2.2 percent in the quarter. Sales of designer items, accessories and men's apparel were particularly strong.
Total sales were $1.97 billion, up 5.3 percent. Analysts, on average, were expecting sales of $1.964 billion, according to Reuters Estimates.
For the current quarter, Seattle-based Nordstrom forecast earnings of 88 cents to 92 cents a share, and for the full year the company expects earnings of $2.87 to $2.91 per share.
It was not immediately clear how those forecasts compared to Wall Street analysts' estimates.
Nordstrom shares rose to $33.60 in extended trade after closing at $30.52 on the New York Stock Exchange.