Nordstrom's 1Q Profits and Sales Up NEW YORK — Better control of expenses and improved inventory management along with high gross margin pushed Nordstrom Inc.’s profits up 25.6 percent on an 8 percent sales gain for the first quarter.
Net income for the quarter ended April 29 jumped to $131.2 million, or 48 cents a diluted share, from $104.5 million, or 38 cents, in the prior year on sales the climbed to $1.79 billion from $1.65 billion. Same-store sales showed a 5.4 percent gain for the quarter. The gross margin rate rose to 37.2 in the quarter, which compares to 36.8 percent last year.
“We are pleased to report the results of the first quarter which show steady progress toward our goal of both increasing same-store sales and improving operating efficiency,” said Blake Nordstrom, principal executive officer and president of the Seattle-based department store retailer, on a conference call to analysts. “By controlling expenses and leveraging above planned sales, our [selling, general and administrative] expense rate fell to 27.7 percent, which is the third consecutive year of reserve in the first quarter.”
Sears Sales Skyrocket NEW YORK — Sears Holdings Corp. posted a profit in the first quarter, reversing a year-ago loss, on sales that soared 58 percent due to the inclusion of sales from its Sears stores.
Earnings also were bolstered by the company’s efforts to reduce expenses at both Kmart and Sears Domestic.
On Thursday the company reported first-quarter net income of $180 million, or $1.14 a diluted share, which is against a loss of $9 million, or 7 cents, in the same period last year. The increased earnings beat the average analyst estimate of 64 cents a share for the quarter.
Revenues rose to $12 billion from $7.6 billion during the same quarter last year. The company attributed the increase to the inclusion of Sears stores for the entire quarterly period ended April 29. The prior year’s numbers did not include Sears results for the whole period because the retailer was acquired by Kmart Holding Corp. on March 24, 2005.
Issa Rae stopped by WWD's NYC headquarters to talk about season two of "Insecure," which premieres this Sunday on HBO. Click link in bio for all the details. #wwdeye (📷: @jgreenery; Styled by @mayteallende)
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