Nordstrom Q2 sales and profit drop

Nordstrom, Inc. has reported earnings per diluted share of 90 cents for the second quarter ended August 3, 2019 compared to 95 cents in the prior year. Total company net sales decreased 5.1 percent to 3,778 million dollars, while net earnings were 141 million dollars compared with 162 million dollars during the same period in fiscal 2018.

“We delivered strong bottom-line results, demonstrating our inventory and expense discipline. We exited the quarter in a favourable inventory position and made important strides in productivity,” said Erik Nordstrom, Co-President, Nordstrom, Inc. in a statement, adding, “We’re focused on driving our top-line, and while this can take time, we are confident in our ability to manage through cycles.”

Nordstrom lowers full year outlook The company said, earnings before interest and taxes (EBIT) were 216 million dollars or 5.7 percent of net sales, compared with 246 million dollars or 6.2 percent of net sales, during the same period in fiscal 2018 driven primarily by lower sales volume. Gross profit, as a percentage of net sales, of 34.5 percent decreased 50 basis points compared with the same period in fiscal 2018.

In full-price, net sales decreased 6.5 percent compared with the same period in fiscal 2018, while off-price net sales decreased 1.9 percent. Total company digital sales grew 4 percent and represented 30 percent of the business.

Updating its outlook for the year, Nordstrom added that it now expects net sales to decrease to percent compared to prior outlook of decrease of 2 percent to flat, EBIT to range between 805 to 855 million dollars with Ebit margin of 5.3 to 5.6 percent against previous estimate of between 805 to 890 million dollars with Ebit margin of 5.3 to 5.8 percent respectively. The company expects diluted earnings per share to range between 3.25 to 3.50 dollars compared to earlier outlook of between 3.25 to 3.65 dollars.

Picture:Nordstrom media gallery

 

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