Online Gains But Nordstrom Still Suffers Weak Q1

Nordstrom, Inc. posted net earnings of $128 million and earnings per diluted share of 66 cents for the first quarter ended May 2, versus $140 million and 72 cents per diluted share for the prior-year period. Comparable sales increased 4.4% in the quarter, the company reported.

Nordstrom missed a Zacks Investment Research analyst average estimate by five cents.

Full-line net store comps increased 0.5%, with the Northwest and Southeast coming in as the top-performing geographic regions. Net sales increased 9.8% to $3.12 billion in the first quarter versus the period a year ago.

Nordstrom Rack comparable sales slipped by 0.2% while Nordstrom.com net sales increased 20%, primarily driven by continued expansion of merchandise selection, the company noted. Nordstromrack.com/HauteLook net sales increased 51%, the company continued, primarily driven by expanded merchandise selection resulting from the launch of Nordstromrack.com.

In the course of fiscal 2015, Nordstrom stated that it plans to open a total of five full-line stores, including two in Canada, and 27 Rack stores. In the first quarter, Nordstrom opened two full-line stores and 10 Racks.