Nordstrom cut costs and boosted earnings in a third quarter that saw traditional full-line store sales slip and its urban retail strategy enter a next phase in Manhattan.
For the third quarter, net earnings were $126 million, or 81 cents per diluted share, versus $67 million, or 39 cents per diluted share, in the period a year prior. In the year-earlier quarter, Nordstrom registered an after-tax estimated non-recurring credit-related charge of $49 million.
Nordstrom topped a MarketBest-published analyst consensus estimate of 64 cents per diluted share for the period.
Net sales were $3.57 billion versus $3.65 billion in the quarter a year previous. Net sales at full-line department stores decreased 4.1% in the quarter to $2.27 billion while those at Nordstrom Rack off-price stores increased 1.2% to $1.3 billion as compared to the period in the year past. Digital sales gained 7% year over year in the period and reached 34% of the company total.
In the quarter, Nordstrom opened its first flagship store in New York City. In addition to the Midtown Manhattan flagship, the company also opened two showroom-style Nordstrom Local stores, one on the Upper East Side and one in the West Village.
“Our market strategy is transforming our business model in how we’re serving customers,” said Erik Nordstrom, co-president, Nordstrom. “We have a unique mix of assets— full-price, off-price, stores, and online— and we are further linking our businesses to serve customers in new and differentiated ways. We achieved an important milestone with the opening of our New York City flagship store, significantly increasing our presence in the world’s top retail market. It’s a culmination of efforts across many teams, and we are grateful for their dedication and passion in bringing this store to life.”