Nordstrom Q2 net sales rise 9.2 percent

Nordstrom reported earnings per diluted share of 1.09 dollars for the second quarter ended August 1, 2015, this included an increase in earnings per diluted share of 0.16 dollar. Total company net sales increased 9.2 percent, marking the fourth consecutive quarter of high-single-digit growth. The company's strategic growth investments, including its entry into Canada, the acquisition of Trunk Club and launch of Nordstromrack.com, drove over one-third of the total sales growth in the second quarter. Total company comparable sales increased 4.9 percent, compared with the same period last year.

Second quarter net earnings were 211 million dollars and earnings before interest and taxes were 377 million dollars, or 10.5 percent of net sales including an increase in earnings before interest and taxes of 51 million dollars. In addition, the impact of the Trunk Club acquisition and the ongoing entry into Canada represented a planned incremental reduction to earnings before interest and taxes of 14 million dollars. Top-performing merchandise categories included cosmetics and women's apparel. The strength in women's apparel was led by coats, dresses and younger customer-focused departments.

Full-line net sales of 2.1 billion dollars increased 1.1 percent compared with the same period last year. Comparable sales increased 0.8 percent, reflecting ongoing improvement in sales trends. The Southwest and Southeast were the top-performing geographic regions. Nordstrom.com net sales increased 20 percent, primarily driven by continued expansion of merchandise selection. Net sales in the off-price business increased 16 percent. Nordstrom Rack net sales of 0.9 billion dollars increased 13 percent, representing 26 consecutive quarters of double-digit growth. Nordstrom Rack comparable sales increased 1.7 percent. Nordstromrack.com/HauteLook net sales increased 50 percent for the second consecutive quarter.

Gross profit of 1.3 billion dollars, or 35.3 percent of net sales, decreased 6 basis points compared with the same period in fiscal 2014. During the first half of the year, the company opened two full-line stores and 11 Nordstrom Rack stores. In the third quarter, the company plans to open three full-line stores in Vancouver, BC, Canada; Minneapolis, Minnesota; and Milwaukee, Wisconsin, relocate a full-line store in Los Angeles, California and open 16 Nordstrom Rack stores.

Updating its expectations for the fiscal 2015, Nordsrom said net sales are now anticipated to increase 8.5 percent to 9.5 percent and comparable sales rise of 3.5 to 4.5 percent.