Nordstrom says special sales help boost 2nd-quarter profit 39 percent

Nordstrom 2nd-quarter net income jumps 39 percent

PORTLAND, Ore. — Nordstrom Inc.’s second-quarter profit jumped nearly 39 percent as shoppers flocked to its sales.

The company maintained its full-year outlook Thursday, but investors were looking for more optimistic guidance and sent shares down in aftermarket trading.

Nordstrom earned $146 million, or 66 cents per share, for the quarter that ended July 31. That’s up from $105 million, or 48 cents per share, in the same quarter last year.

The company’s revenue rose nearly 13 percent to $2.5 billion as both sales and credit card revenue rose.

Nordstrom, which operates its upscale department store chain and discounter Nordstrom Rack, credited the growth to sales momentum and three special sale events.

Analysts polled by Thomson Reuters expected the company to earn 66 cents per share on revenue of $2.4 billion.

The company reported that quarterly sales at its stores open at least a year grew 8.4 percent. The figure, considered a key measure of retailers’ financial health as it excludes recently opened or closed stores.

Shoppers appeared to favor its traditional stores and shied away from Nordstrom Rack during the quarter. Sales at stores open at least a year rose 9.9 percent at Nordstrom stores but fell nearly 1 percent at Nordstrom Rack.

Nordstrom Chief Financial Officer and vice president Mike Koppel said the company’s customers, who tend to be higher-income than average department store shoppers, haven’t changed their habits this year. The company does not expect them to change in the near-term, indicating those consumers have not been frightened by the economy’s continuing weakness.

“We’re fully prepared to continue to operate in that market and feel good about the strengths within our portfolio to take advantage of those opportunities,” said Blake Nordstrom, the company’s president.

He said Nordstrom is well-positioned for the second half of the year and continues to see improvement in both revenue and profit. While the company doesn’t expect significant growth of its overall market in the short-term, Koppel said there are opportunities for it to gain market share.

Nordstrom maintained its full-year earnings expectation of earning $2.50 to $2.65 per share. Analysts anticipate $2.62 per share.

Shares of Nordstrom, based in Seattle, fell $1.46 — more than 4 percent — to $31.98 in after-hours trading.

(This version CORRECTS attribution of quote to Blake Nordstrom)