By  on August 22, 2007

Nordstrom Inc. said after the market closed on Tuesday that its board authorized a share buyback plan worth $1.5 billion, which follows the completion of a prior buyback program in the recently finished second quarter.

The retailer also declared a regular quarterly dividend of 13.5 cents a share, payable Sept. 14 to shareholders of record as of Aug. 31.

The retailer said in a statement that the "shares from the new $1.5 billion authorization are expected to be acquired through open market transactions over a period of up to the next 24 months." The number and timing of repurchases will be determined by market conditions and applicable Securities and Exchange Commission rules, the firm stated.

On Thursday, Nordstrom raised its full-year earnings guidance after posting a 0.9 percent gain in second-quarter net income to $180.4 million on sales that rose 5.2 percent to $2.39 billion. Same-store sales rose 5.9 percent in the quarter.

The luxury department store raised its full-year guidance to between $2.91 and $2.97 a diluted share, from a previous range of $2.81 to $2.90.

Last month, Nordstrom inked a deal to sell Façonnable for $210 million to the M1 Group. Nordstrom bought the brand in 2000 for $169 million.

Shares of Nordstrom shed 0.1 percent at the bell to $45.52, but rose 1.1 percent in after-hours trading to $46. Their 52-week high is $59.70, and the low is $33.31.

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