SAN FRANCISCO, Feb 23 (Reuters) - Nordstrom Inc posted a higher-than-expected quarterly profit and gave a reassuring outlook for fiscal 2009, sending shares of the upscale department store chain up 12 percent on Monday.
The after-hours share rebound more than made up for a nearly 5 percent slide during regular trading.
Nordstrom, whose fourth-quarter sales were slightly better than expected, said it would not continue providing quarterly earnings estimates due to the economic uncertainty.
The midpoint of the retailer's fiscal 2009 outlook was comparable with Wall Street estimates.
Seattle-based Nordstrom forecast earnings per share of $1.10 to $1.40, with a drop in same-store sales of 10 percent to 15 percent. Analysts, on average, had been expecting fiscal earnings of $1.24, according to Reuters Estimates.
Nordstrom's net profit fell 68 percent to $68 million, or 31 cents per share, in the fourth quarter ended Jan. 31, from $212 million, or 92 cents per share, a year earlier.
Analysts, on average, had been expecting earnings of 30 cents per share, according to Reuters Estimates.
Sales fell 8.5 percent to $2.3 billion, while same-store sales, a key measure of financial performance, fell 12.5 percent. The company had released those sales figures on a preliminary basis earlier in February.
Nordstrom, Saks Inc and more mid-priced department store chains such as Macy's Inc have all faced steep sales declines as consumers cut back on discretionary spending in the recession.
Nordstrom said it was continuing to adjust its inventory levels and lower expenses.
Nordstrom's off-price chain, Nordstrom Rack, outperformed its main chain of stores, with a same-store decrease of only 1.5 percent. Nordstrom's direct-to-consumer unit rose 9.7 percent, the company said.
In November, Nordstrom said it was suspending its share buyback until economic conditions improved.
Nordstrom, whose shares are down 69 percent from a year ago as of Monday's close, said it would continue to update its annual forecast each quarter. But it said it would stop providing quarterly estimates 'given the uncertainty surrounding the economic environment.'
Nordstrom shares rose 12 percent to $12.70 in extended trade, after closing at $11.33, down 4.7 percent on the New York Stock Exchange.
(Reporting by Alexandria Sage; Editing by Gary Hill, Richard Chang)
((alexandria.sage@thomsonreuters.com, +1-415-677-3923; Reuters Messaging: alexandria.sage.reuters.com@reuters.net)) Keywords: NORDSTROM/ (See http://blogs.reuters.com/shop-talk/ for Shop Talk -- Reuters' retail and consumer blog.) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The after-hours share rebound more than made up for a nearly 5 percent slide during regular trading.
Nordstrom, whose fourth-quarter sales were slightly better than expected, said it would not continue providing quarterly earnings estimates due to the economic uncertainty.
The midpoint of the retailer's fiscal 2009 outlook was comparable with Wall Street estimates.
Seattle-based Nordstrom forecast earnings per share of $1.10 to $1.40, with a drop in same-store sales of 10 percent to 15 percent. Analysts, on average, had been expecting fiscal earnings of $1.24, according to Reuters Estimates.
Nordstrom's net profit fell 68 percent to $68 million, or 31 cents per share, in the fourth quarter ended Jan. 31, from $212 million, or 92 cents per share, a year earlier.
Analysts, on average, had been expecting earnings of 30 cents per share, according to Reuters Estimates.
Sales fell 8.5 percent to $2.3 billion, while same-store sales, a key measure of financial performance, fell 12.5 percent. The company had released those sales figures on a preliminary basis earlier in February.
Nordstrom, Saks Inc and more mid-priced department store chains such as Macy's Inc have all faced steep sales declines as consumers cut back on discretionary spending in the recession.
Nordstrom said it was continuing to adjust its inventory levels and lower expenses.
Nordstrom's off-price chain, Nordstrom Rack, outperformed its main chain of stores, with a same-store decrease of only 1.5 percent. Nordstrom's direct-to-consumer unit rose 9.7 percent, the company said.
In November, Nordstrom said it was suspending its share buyback until economic conditions improved.
Nordstrom, whose shares are down 69 percent from a year ago as of Monday's close, said it would continue to update its annual forecast each quarter. But it said it would stop providing quarterly estimates 'given the uncertainty surrounding the economic environment.'
Nordstrom shares rose 12 percent to $12.70 in extended trade, after closing at $11.33, down 4.7 percent on the New York Stock Exchange.
(Reporting by Alexandria Sage; Editing by Gary Hill, Richard Chang)
((alexandria.sage@thomsonreuters.com, +1-415-677-3923; Reuters Messaging: alexandria.sage.reuters.com@reuters.net)) Keywords: NORDSTROM/ (See http://blogs.reuters.com/shop-talk/ for Shop Talk -- Reuters' retail and consumer blog.) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.