Nordstrom Rack Drives Holiday Sales Gain

Nordstrom has reported a comparable sales increase of 1.3% for the nine weeks ended January 5, 2019, highlighting the strength of its Nordstrom Rack off-price store division during the holidays.

In full-price department stores, comparable sales increased 0.3% relative to the third quarter year-to-date increase of 1.9%, reflecting softer traffic in stores. In the company’s off-price division, comparable sales increased 3.9%, which was consistent with year-to-date trends and expectations, the company said. Digital sales for the company increased 18% over the same period last year, representing 36% of sales.

While year-to-date comparable sales of 2.1% were in-line with the company’s prior outlook of approximately 2% for fiscal 2018, full-price sales were below the company’s expectations. As a result, the company said it has incorporated in its annual expectations higher markdowns taken during holiday and to reposition inventory to a more appropriate level by the end of the year. Earnings per diluted share is expected to be around the low end of the company’s prior outlook range of $3.27 to $3.37, including the third quarter estimated non-recurring credit-related charge of $0.28, or for comparability, $3.55 to $3.65, excluding the impact of the charge.