Nordstrom’s third quarter earnings were impacted by a credit-related charge while the department store retailer kept sales relatively steady year over year.
Total company net sales increased 3% to $3.6 billion in the third quarter ended November 3, 2018, compared with $3.5 billion in sales in the quarter ended October 28, 2017. This included an unfavorable timing shift of approximately 100 basis points, primarily from the reversal of the second quarter impact of the new revenue recognition standard as it relates to the timing of the retailer’s anniversary sale.
Comparable sales increased 2.3% in the third quarter. The company noted digital sales growth of 20% in the quarter. The off-price business, Nordstrom Rack, exceeded expectations with a comparable sales increase of 5.8% in the third quarter. In its namesake full line stores, comparable sales increased 0.4%.
Third quarter net earnings were $67 million compared with $114 million during the same period in fiscal 2017. Excluding an after-tax impact of $49 million for an estimated credit-related charge, net earnings were relatively flat, the company said. Diluted earnings per share in the third quarter were $0.39 compared with $0.67 in the previous third quarter, which also reflected the non-recurring estimated credit-related charge of $0.28.