Nordstrom (NYSE:JWN) advanced in pre-market trade on Friday, a day after the largest U.S. luxury department-store chain forecast fiscal full-year earnings above Wall Street’s projections, aided by growing sales.
Shares rose as much as 4.5% to US$78.30. The stock had retreated 5.6% since the beginning of the year through the close of trading on Thursday.
Earnings per share are projected to be US$3.85 to US$3.95 in the fiscal year ending January 30, the Seattle, Washington-based company said in a statement on Thursday. That’s up from its previous guidance of US$3.65 to US$3.80 per share, and surpasses the analysts’ US$3.75 average estimate, according to Capital IQ.
Nordstrom lifted its fiscal full-year sales projection to 8.5% to 9.5% growth, compared to its previous forecast of 7% to 9%. Analysts predicted an 8% sales increase.
It also boosted full-year comparable sales outlook to 4.5% to 5% growth, compared to 2 to 4% previously.
For the fiscal second quarter ended August 1, Nordstrom reported better-than-expected results. Net income rose to US$211mln, or US$1.09 per share, in the quarter, from US$183mln, or US$0.95 per share, in the same quarter last year. Revenue grew to US$3.70bn from US$3.39bn. Analysts had been predicting US$0.90 in earnings and US$3.67bn in revenue. Second-quarter comparable sales rose 4.9%.
Nordstrom is growing its chain of outlets and experimenting with online platforms like flash-sale site HauteLook and a clothing service called Trunk Club.
Nordstrom operates 304 stores, including 116 full-line stores in the United States and two in Canada; 178 Nordstrom Racks; two Jeffrey boutiques; and one clearance store. Next month, Nordstrom plans to open its third store in Canada, a flagship store in Vancouver, British Columbia, as part of a push to open six full-line stores in the country,
In May, Nordstrom agreed to sell its U.S. Visa and private label consumer credit card portfolio to TD Bank Group (TSE:TD). Upon closing, which is expected by year-end, the company expects to receive about $1.8bn, net of $325mln in debt reduction and transaction costs.