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Nordstrom Gains Bolstered By Rack, Online Sales

Friday February 22nd, 2013 - 4:18PM


In the fiscal year ended February 2, Nordstrom. Inc. reported that net earnings increased 7.7% to $735 million, or $3.56 per diluted share, versus  $683 million, or $3.14 per diluted share, for fiscal year 2011. Full year comparable store sales increased 7.3%.

Nordstrom posted what it declared were record net sales of $11.8 billion, a figure that gained 12.1% versus the prior fiscal year results.

For the fourth quarter, Nordstrom reported a net earnings increase of 20% to $284 million, or $1.40 per diluted share, versus $236 million, or $1.11 per diluted share, for the same period last year. Full-line store comps increased 2.2%

Fourth quarter net sales were $3.6 billion, an increase of 13.5% compared with the same period in fiscal 2011.

Nordstrom’s fiscal 2012 fourth quarter and year included an extra week. In that week, the company generated net sales of $162 million, it pointed out, representing a four cent increase to earnings per diluted share in the quarter and fiscal year. Nordstrom’s didn’t include he 53rd week is comp calculations.

Nordstrom Rack, the company’s lower-price outlet operation, opened 15 stores in fiscal 2012 and continued to demonstrate strong sales growth in the fourth quarter with a net sales advance of 23%, the company said. Rack comps increased 7.1%.

In a conference call, Blake Nordstrom, the company’s president, said plans call for about 24 Rack openings in 2013 and more than 30 in 2014.

The company added that direct sales has surpassed $1 billion annually based on a comp increase of 31%. The company said direct sales growth continues to outpace the overall company, reflecting initiatives to improve the customer experience online.