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Nordstrom Produces Mixed Results In Q1

Nordstrom produced mixed results in its first quarter, posting a profit and growth in its off-price division while the full-line department stores lagged.

For the first quarter, Nordstrom posted net earnings of $63 million, or 37 cents per diluted share, versus $46 million, or 26 cents per diluted share, in the fiscal year prior.

Earnings in the quarter included an interest expense charge of $18 million, or six cents per share, related to a $650 million debt refinancing. Results for last year’s quarter included a non-operational charges of $30 million, or 10 cents per share, primarily related to higher credit chargeback expenses associated with an industry change in liability rules. Adjusted diluted earnings per share beat a Zacks Investment Research analyst average estimate by 16 cents.

Total company net sales advanced 2.7% to $3.28 billion, but comparable sales decreased 0.8% versus the quarter last year. Online sales came in at 24% of total net sales, driven by 11% growth at Nordstrom.com and 19% growth at Nordstromrack.com/HauteLook in the quarter year over year. Total customer count gained versus the 2016 first quarter, with the retailer citing its ongoing efforts to gain new customers as contributing to the increase.

Comps for the Nordstrom brand, including U.S. and Canada full-line department stores, Nordstrom.com and Trunk Club, decreased 2.8%. In the U.S.. top-performing categories in department stores and Nordstrom.com were men’s and women’s apparel, while the west was the top-ranking sales growth region. Comps for the Nordstrom Rack brand, including namesake stores and Nordstromrack.com/HauteLook, increased 2.3%.