Nordstrom’s sales rose in the third quarter, with strong e-commerce results for both the department store and off-price Rack division, although the company posted a net loss.
In the third quarter ended October 29, Nordstrom posted a net loss of $10 million, or six cents per diluted share, versus net earnings of $81 million, or 42 cents per share, in the year-earlier period. With an impairment charge excluded and a tax charge included, Nordstrom noted, company adjusted earnings per diluted share were 84 cents. An analyst average estimate from Zacks Investment Research called for adjusted diluted earnings per share to come in at 52 cents for the quarter.
Comparable store sales increased 2.4%, with namesake brand comps, the e-commerce operation, and the Trunk Club personal stylist operation, increasing 0.9% and Nordstrom Rack comps, including stores and online operations, increasing 3.9%. At Nordstrom, department store comps in the U.S. fell 4.5% but e-commerce comps gained 20.1%. Nordstrom Rack store comps gained 0.9% but e-commerce comps, including the namesake operation and HauteLook, advanced 23.2%.
Net sales were $3.47 billion versus $3.24 billion in the 2015 quarter as net revenue, including credit card returns, came in at $3.54 billion versus $3.33 billion in the year prior.
“We’ve made considerable changes in the way we operate to improve the customer experience while increasing our productivity,” said Blake Nordstrom, the company’s co-president. “We are proud of our team’s efforts to align inventories and improve our operating efficiencies. These outcomes have positively impacted our operating results.”
Nordstrom operates 348 stores in 40 states, including 123 full-line stores in the U.S., Canada and Puerto Rico and 215 Nordstrom Rack stores.
