Nordstrom raises lower end of annual sales outlook, sees uncertain environment Per Reuters
(Reuters) – Nordstrom beat third-quarter revenue and profit estimates on Tuesday, helped by rising demand for popular brands including On Running, Hoka and Vuori at its department stores.
The company’s shares rose about 1% in extended trading.
Nordstrom (NYSE: ) beat third-quarter revenue and profit estimates on Tuesday, helped by increased demand for popular brands including On Running, Hoka and Vuori at its department stores.
Adding new and desirable brands to its shelves has helped Nordstrom attract more customers. The company’s efforts to focus on digital growth and expand Rack stores, its off-price brand, boosted sales ahead of a potentially mixed holiday season.
The Seattle, Washington-based company now expects growth of 1% to 2% from its previous apartment inventory to 2%.
Fashion chains such as Abercrombie & Fitch and Gap have also benefited from customers purchasing their new and best product offerings.
Nordstrom has bucked a trend of low spending at department stores by wooing shoppers with categories including women’s clothing, shoes and men’s clothing, while peers such as Macy’s (NYSE: ) and Kohl’s (NYSE: ) struggled with weak demand.
Nordstrom’s net income rose 4.3% to $3.46 billion in the quarter ended Nov. 2 from last year. Analysts, on average, estimated an increase of 0.8% to $ 3.35 billion, according to data compiled by LSEG.
Benefits from strong full-price sales and improvements in variable costing across the business helped the high-end department store chain expand its profit margins.
Its gross profit for the quarter as a percentage of sales increased 60 basis points to 35.6%.
The company reported adjusted earnings of 33 cents per share in the third quarter, compared with analysts’ expectations of 21 cents a share.
During the July to September period, foot traffic at Nordstrom and Nordstrom Rack stores grew 1.4% and 5% year over year, respectively, according to Placer.ai data.
In September, the family that founded Nordstrom offered to take the department store chain private for $23 per share, partnering with the Mexico-based retailer in their latest bid.
