Nordstrom reported that its fourth-quarter net earnings declined to $151 million compared with net earnings of $201 million in the year-ago period.
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.
Earnings before interest and taxes was $350 million, or 7.6 percent of net sales, compared to EBIT of $424 million, or 10 percent of net sales for the same period in fiscal 2016.
There was no update on Nordstrom’s previously announced plans to go private.
Retail EBIT decreased $93 million compared with the same quarter last year, reflecting investments in capabilities to support growth plans, which would include the building of Nordstrom’s first Manhattan store, a flagship on West 57th Street.
Total sales for the quarter reached $4.6 billion, an 8.4 percent from the $4.2 billion in the year-ago period. Comparable sales for the fourth quarter increased 2.6 percent.
In the Nordstrom brand, which includes U.S. and Canada full-line stores, nordstrom.com and Trunk Club, net sales increased 6.4 percent and comparable sales increased 2.4 percent. Across U.S. full-line stores and nordstrom.com, the top-performing merchandise categories were kids and men’s apparel.
At Nordstrom Rack, net sales increased 15 percent and comparable sales increased 3.7 percent.
For all of 2017, Nordstrom’s net earnings rose to $437 million from $354 million a year ago, and EBIT was $926 million, or 6.1 percent of net sales, compared EBIT of $805 million, or 5.6 percent of net sales, for the same period in fiscal 2016.
Sales rose to $15.1 billion for fiscal year 2017, representing a 4.4 percent increase from $14.5 billion in sales in 2016. Nordstrom picked up an extra $220 million in sales from this year having a 53rd week.