10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Nordstrom Inc. Reports Operating Results (10-Q)

December 03, 2012 | About:
10qk

10qk

18 followers
Nordstrom Inc. (JWN) filed Quarterly Report for the period ended 2012-10-27.

Nordstrom, Inc. has a market cap of $10.87 billion; its shares were traded at around $53.89 with a P/E ratio of 16.5 and P/S ratio of 1. The dividend yield of Nordstrom, Inc. stocks is 2%. Nordstrom, Inc. had an annual average earning growth of 18.4% over the past 10 years. GuruFocus rated Nordstrom, Inc. the business predictability rank of 3.5-star.

Highlight of Business Operations:

Total company net sales increased 13.8% for the quarter and 11.4% for the nine months ended October 27, 2012, compared with the same periods in 2011. Overall same-store sales increased 10.7% for the quarter and 7.7% for the nine months ended October 27, 2012. During the nine months ended October 27, 2012, we opened one Nordstrom full-line store, opened thirteen Nordstrom Rack stores and relocated three Nordstrom Rack stores.

Nordstrom net sales for the third quarter of 2012 were $1,978, an increase of 11.5% compared with the same period in 2011, while net sales were $6,359 for the nine months ended October 27, 2012, an increase of 9.2% compared with the same period in 2011. Nordstrom same-store sales increased 11.2% for the quarter and 8.1% for the nine months ended October 27, 2012, compared with the same periods in 2011. Both the number of items sold and the average selling price increased for the quarter and nine months ended October 27, 2012, compared with the same periods last year. Top-performing categories for both the quarter and nine months ended October 27, 2012, included Men's Shoes and Men's Apparel. For the quarter, Kids' Apparel was also a highlight while Handbags performed well for the nine months ended October 27, 2012. Nordstrom net sales and same-store sales for the quarter ended October 27, 2012 were favorably impacted by the Anniversary Sale shift, which moved an additional week of the event from the second quarter into the third quarter.

Full-line same-store sales increased 8.1% for the quarter and 4.6% for the nine months ended October 27, 2012, compared with the same periods in 2011. The top-performing geographic regions for full-line stores for the quarter were the Midwest and Northwest and for the nine months ended October 27, 2012 they were the South and Midwest. The Direct channel continued to show strong sales growth with an increase of 38.3% in the third quarter of 2012 and 40.6% in the first nine months of 2012, compared with the same periods in the prior year. These increases significantly outpaced our overall performance and are reflective of how customers are responding to our ongoing e-commerce initiatives.

Nordstrom Rack net sales increased $85, or 16.3%, for the quarter and $269, or 18.2% for the nine months ended October 27, 2012, compared with the same periods in 2011. Nordstrom Rack same-store sales increased 8.1% for the quarter and 7.5% for the nine months ended October 27, 2012. Both the number of items sold and the average selling price of Nordstrom Rack merchandise increased for the quarter and nine months ended October 27, 2012, compared with the same periods last year.

Our Retail selling, general and administrative expenses ("Retail SG&A") increased $85, or 12.6%, for the quarter and $265, or 13.3%, for the nine months ended October 27, 2012, compared with the same periods in 2011. The increases were primarily due to a continuation of various initiatives, which began in the second half of 2011, to improve the customer experience across all channels and specifically to grow our e-commerce business. These include higher planned e-commerce, fulfillment and technology expenses. The increases also reflected higher sales volume and the opening of fourteen stores since the third quarter of 2011. Our Retail SG&A rate decreased 30 basis points for the third quarter of 2012, compared with the third quarter of 2011, due to expense leverage gained from the additional sales from the Anniversary Sale shift, partially offset by increases in fulfillment costs. As a result of the higher fulfillment and technology expenses, our Retail SG&A rate increased 46 basis points for the nine months ended October 27, 2012, compared with the same period in the prior year.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.5/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK