Nordstrom Shares Rise After Profit Forecast Tops EstimatesLindsey Rupp
Nordstrom Inc. rose the most in more than five months after forecasting full-year profit that exceeded analysts’ estimates, helped by strengthening sales.
Earnings will be $3.85 to $3.95 a share this fiscal year, the Seattle-based company said in a statement Thursday. That’s up from the retailer’s previous estimate of as much as $3.80 a share, and tops analysts’ $3.75 average estimate.
Nordstrom is seeing improved sales of younger women’s apparel after the retailer brought in brands like Topshop and J.Crew’s Madewell. To target more price-conscious shoppers, Nordstrom is expanding its chain of outlets and experimenting with online platforms like flash-sale site HauteLook and a clothing service called Trunk Club.
Shares of the largest U.S. luxury department-store chain rose as much as 5.7 percent to $79.22 in New York on Friday, the biggest intraday gain since Feb. 20. The stock had slid 5.6 percent this year through Thursday.
Nordstrom said revenue will grow at least 8.5 percent this year, up from its earlier forecast of at least 7 percent. Analysts expected an 8 percent sales increase. Comparable sales will gain 3.5 percent to 4.5 percent this year, topping the retailer’s earlier outlook of 2 percent and 4 percent.
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