Nordstrom Pulls off Stellar Third-Quarter Results, Raises Outlook

Nordstrom store
Nordstrom.
AP Images.

Nordstrom Inc.’s shares are climbing in after-market trading today — up nearly 8 percent to $60.42 as of 4:30 p.m. ET — after the firm posted third-quarter results that topped forecasts across the board.

The department store chain posted a reported net loss of $10 million, or 6 cents per diluted share, compared with reported net income of $81 million, or 42 cents per diluted share, in the year-ago same period. Adjusted diluted earnings per share, however, soared well above expectations, landing at 84 cents per diluted share. Analysts had expected diluted EPS of 51 cents.

Nordstrom’s total sales advanced 7.2 percent year-over-year, to $3.5 billion, while comparable sales rose 2.4 percent.

Company co-president Blake Nordstrom attributed some of the firm’s recent successes to the “considerable changes” the company has made in the way “we operate to improve the customer experience while increasing our productivity.”

We are particularly proud of our team’s efforts to align inventories and improve our operating efficiencies,” Blake Nordstrom added. “These outcomes have positively impacted our operating results.”

The company once again raised its fiscal year 2016 outlook for adjusted earnings per diluted share. Nordstrom now expects adjusted diluted EPS in the range of $2.85 to $2.95 — compared with the upward adjusted range of $2.60 to $2.75 it provided during its second-quarter earnings release — to incorporate the better-than-expected third quarter results.