Nordstrom Q1 net sales increase 6.8 percent

REPORT_ Nordstrom reported earnings per diluted share of 0.72 dollars for the first quarter ended May 3, 2014,

which exceeded the company’s prior outlook of 0.60 dollars to 0.70 dollars. Total company net sales of 2.8 billion dollars increased 6.8 percent compared with the same period in fiscal 2013 and total company comparable sales increased 3.9 percent.

Nordstrom, headquartered in Seattle, also announced it will seek a financial partner for its Nordstrom credit card receivables, which totals approximately 2 billion dollars. First quarter net earnings were 140 million dollars compared with 145 million dollars for the same period last year. Nordstrom comparable sales, which consist of the full-line and direct businesses, increased 3.3 percent compared with last year’s comparable sales increase of 3.1 percent. Top-performing merchandise categories included accessories, women’s shoes, and cosmetics.

Full-line comparable sales decreased 1.9 percent. The Southwest and Southern California regions were the top-performing geographic areas. Direct net sales increased 33 percent in the first quarter, on top of last year’s first quarter increase of 25 percent, driven by expanded merchandise selection and ongoing technology investments to enhance the online experience. Nordstrom Rack net sales increased 126 million dollars, or 20 percent, compared with the same period in fiscal 2013, reflecting 27 store openings since the first quarter of fiscal 2013.

Nordstrom rack comparable sales increased 6.4 percent. Gross profit, as a percentage of net sales, decreased 124 basis points compared with the same period in fiscal 2013 in part due to increased markdowns in response to the heightened promotional environment. The decrease was also attributable to Nordstrom Rack’s accelerated store expansion and growth in the Nordstrom Rewards loyalty program. With 3.9 million active members, sales from members represented 38 percent of sales, increasing from 36 percent for the same period last year.

Nordstrom announced plans to open three full-line stores and 17 Nordstrom Rack stores during the remainder of fiscal 2014.