Nordstrom Fiscal 2013 Earnings Exceed Outlook

Nordstrom, Inc. reported fiscal 2013 earnings per diluted share of $3.71, which exceeded the company’s full-year outlook of $3.65 to $3.70.

Earnings per diluted share for the fourth quarter ended February 1, 2014, were $1.37 compared with $1.40 for the same quarter last year. Fourth quarter net earnings were $268 million compared with $284 million for the same quarter last year. The company’s fourth quarter sales performance reflected trends consistent with its experience throughout the year, Nordstrom reported. Total company same-store sales increased 2.6% compared with last year’s increase of 6.3%. Total company net sales of $3.6 billion were flat with the same period in fiscal 2012. Excluding the 53rd week, total company net sales increased 5.2% for the fourth quarter compared with the same period last year.

Nordstrom same-store sales increased 2.2% compared with last year’s same-store sales increase of 6.1%. Full-line same-store sales decreased 3.3% compared with last year’s same-store sales increase of 2.2%. The Southwest and Southeast regions were the top-performing geographic areas, according to the company.

Direct same-store sales increased 30%, building on last year’s increase of 31%, “driven by expanded merchandise selection and ongoing technology investments to enhance the customer experience,” according to the company.

Nordstrom’s noted that it follows the retail 4-5-4 reporting calendar, which included an extra week in the fourth quarter of fiscal 2012 (the 53rd week). The 53rd week represented net sales of approximately $162 million and earnings per diluted share of approximately $0.04 for both the fourth quarter and fiscal year 2012. The 53rd week is not included in same-store sales calculations.

For the full year, Nordstrom reported that its total company net sales of $12.2 billion increased 3.4% compared with fiscal 2012. Excluding the 53rd week, total company net sales increased 4.9% compared with fiscal 2012. Total company same-store sales increased 2.5%, on top of last year’s increase of 7.3%.

Nordstrom same-store sales increased 2.3% compared with last year’s same-store sales increase of 7.5% Full-line same-store sales decreased 2.1% compared with last year’s same-store sales increase of 3.9%. Direct same-store sales increased 30% on top of last year’s increase of 37%.

According to the company, its Nordstrom Rewards loyalty program continued to play an important role in reaching new customers and strengthening existing customer relationships. For the second consecutive year, the company opened over one million new accounts. With 3.8 million active members, sales from members for fiscal 2013 represented 38% of sales, increasing from 36% in fiscal 2012.


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