Nordstrom Sales Rise In Q4

As the Nordstrom family explores a going private transaction, the department store retailer reported a rise in fourth quarter sales while earnings were impacted by the tax reform.

Fourth quarter net earnings were $151 million compared with net earnings of $201 million for the same period in fiscal 2016. Net earnings included a $42 million charge related to corporate tax reform, including a one-time, non-cash charge of $51 million related to the revaluation of its deferred tax assets, partially offset by cash tax savings from a lower federal tax rate.

Fourth quarter earnings per diluted share was $0.89, which included impacts associated with corporate tax reform consisting of a $0.25 charge primarily related to its income tax provision and a one-time pretax investment in its employees of $16 million or $0.06.

Total company net sales of $4.6 billion for the fourth quarter increased 8.4%, compared with net sales of $4.2 billion during the same period in fiscal 2016. Total company comparable sales for the fourth quarter increased 2.6%.

In the Nordstrom brand, which includes U.S. and Canada full-line stores, Nordstrom.com and Trunk Club, net sales increased 6.4% and comparable sales increased 2.4%. In the Nordstrom Rack off-price brand, net sales increased 15% and comparable sales increased 3.7%.

Full year net earnings were $437 million compared with net earnings of $354 million for the same period in fiscal 2016. For fiscal 2017, earnings per diluted share was $2.59.

Total company net sales were a record $15.1 billion for fiscal year 2017 an increase of 4.4%, compared with net sales of $14.5 billion during the same period in fiscal 2016. Total company comparable sales for the fiscal year 2017 increased 0.8%.