Nordstrom Posts Downbeat Q1 Earnings, But Sales Top Expectations

Nordstrom, Inc. JWN reported weaker-than-expected earnings for the first quarter, but the company's sales exceeded analysts' estimates. The Seattle, Washington-based company posted a quarterly profit of $128 million, or $0.66 per share, versus a year-ago profit of $140 million, or $0.72 per share. Its total revenue climbed to $3.22 billion from $2.93 billion. However, analysts were estimating earnings of $0.71 per share on revenue of $3.17 billion. The average estimate among 22 Estimize users was for earnings of $0.72 per share and revenue of $3.18 billion. Total company comparable sales climbed 4.4 percent in the quarter. Nordstrom comparable sales rose 4.2 percent, while Nordstrom.com net sales climbed 20 percent during the quarter. Earnings before interest and taxes slipped to $245 million in the first quarter, versus $265 million in the year-earlier quarter. Gross profit rose 7 basis points to 35.9 percent. Inventory surged 19 percent versus the year-earlier period. During the first quarter, Nordstrom repurchased 0.4 million shares of its common stock for $33 million. Nordstrom reiterated its FY15 guidance for earnings of $3.65 to $3.80 per share, net sales growth of 7 to 9 percent, and comparable sales growth of 2 to 4 percent. Nordstrom shares rose 0.13 percent to $74.25 in the after-hours trading session.