WASHINGTON (dpa-AFX) - Fashion specialty retailer Nordstrom Inc. (JWN), Thursday reported a nearly two percent rise in fourth-quarter profit, mainly on a double-digit sales growth, partly offset by higher occupancy and retail costs. Earnings for the quarter topped estimates by a penny, while sales were in line with expectations.
Nordstrom provided some weak earnings outlook for the full year 2012 that is expected to miss current analysts' expectations.
Sales for the quarter rose 12.5 percent from last year, with same-store sales growth of 7.1 percent.
Nordstrom sells a range of apparel, cosmetics, and accessories through channels including Nordstrom full-line stores, off-price Nordstrom Rack stores, and online store nordstrom.com, as well as through catalog.
At Nordstrom segment, which include the full-line and direct businesses, net sales grew nearly 10 percent, with same-store sales increase of 8.4 percent. Top-performing merchandise categories include Handbags, Designer and Cosmetics.
Nordstrom Rack net sales jumped 17.7 percent from last year, with same-store sales up 2.2 percent. Meanwhile, the credit segment indicated an improvement in customer payment rates, resulting in favorable trends in delinquency and write-offs.
Annualized net write-offs were 5.4 percent of average credit card receivables during the quarter, down from 7.2 percent last year. Delinquencies as a percentage of credit card receivables at the end of the quarter were 2.6 percent, down from 3 percent.
Nordstrom's fourth-quarter profit rose to $236 million or $1.11 per share from $232 million or $1.04 per share last year. On average, 22 analysts polled by Thomson Reuters expected earnings of $1.10 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter grew 12.5 percent to $3.17 billion from $2.816 billion a year ago. Seventeen Street analysts had a consensus revenue estimate of $3.17 billion for the quarter.
Total revenues for the quarter, including credit card revenues, increased to $3.266 billion from $2.916 billion last year. Same-store sales 7.1 increased percent from the year-ago quarter.
Looking ahead to the full year 2012, the company expects earnings of $3.30 to $3.45 per share. Analysts currently expect earnings of $3.58 per share for the year.
Same-store sales for the year is expected to increase 4 to 6 percent.
The company's outlook includes the impact of the 53rd week, which will add $160 to $170 million to total sales and about $0.03 to $0.05 to earnings per share. The company expects gross margin for the period to decrease 5 to 35 basis points.
The company plans to open 1 Nordstrom Full-line store and 14 Nordstrom Rack stores in 2012.
JWN closed Thursday at $52.18, up $1.18 or 2.31%, on a volume of 3.8 million shares on the NYSE. In after hours, the stock lost $1.21 or 2.32%.
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