Nordstrom September Sales Rise – Analyst Blog

Nordstrom Inc’s (JWN) same-store sales for September 2010 improved 7.5% compared with September 2009. Total retail sales were $810 million, up 12.5% from $720 million September 2009.

 

The company reported an increase in same-store sales of 9.3% in the year to date. Total retail sales improved 14.1% to $5.83 billion from $5.11 billion for the same period in fiscal 2009.

 

Nordstrom reported a quarter-to-date same-store sales improvement of 7% compared with the same period in fiscal 2009. Quarter-to-date total retail sales were $1.43 billion, up13.0% from $1.26 billion for the same period in fiscal 2009.

 

At the end of September 2010, the company had 200 stores, an increase of 21 stores from end of September 2009. Full-line stores totaled 115 while Rack and other store totaled 85.

 

Nordstrom opened four Nordstrom Rack stores at Renaissance Center in Durham, North Carolina; Brentwood Square in St. Louis, Missouri; University Commons in Boca Raton, Florida; and Chicago Avenue in Chicago, Illinois in September.

 

In October, Nordstrom already opened a Nordstrom Rack in the Walter’s Crossing neighborhood in Tampa, Florida. The company also has plans to open two Nordstrom Rack stores at Lakewood Center in Lakewood, California and Burbank Empire Center in Burbank, California.

 

Nordstrom posted a solid year-over-year earnings per share growth of 37.5% in the second quarter. During the quarter, Multi-channel same-store sales jumped 9.9%, driven by the Jewelry, Dresses and Women’s Shoes categories. Full-line comparable store sales logged a growth of 8.2%, driven by strong performances in the Midwest and the South. However, overall comparable store sales growth was partially offset by a 0.9% decline in Nordstrom Rack same-store sales.

 

Based on same-store sales growth of 4% to 6%, Nordstrom also guided fiscal 2010 earnings to a range of $2.50 to $2.65 per share.

 

The Zacks Consensus Estimates for fiscal third-quarter 2010 and fourth-quarter 2010 are 50 cents per share and 94 cents per share, respectively. For fiscal years 2010 and 2011, the Zacks Consensus Estimates are respectively, $2.63 per share and $3.03 per share.

 

Though Nordstrom remains focused on expanding the store network to drive top-line growth, a sluggish discretionary spending environment, intense competition and exposure to seasonal fluctuations keep us on the sidelines.

 

We maintain our “Neutral” recommendation on Nordstrom. The quantitative Zacks #3 Rank (short-term Hold rating) for the company indicates no clear directional pressure on the stock over the near term.

 

Based in Seattle, Washington, Nordstrom Inc. is a leading fashion specialty retailer in the U.S. , offering high quality apparel, shoes, cosmetics and accessories for men, women and kids. The company offers both branded and private label merchandise, as well as a private label card, two Nordstrom VISA credit cards and debit cards for Nordstrom purchases.