Same-store sales at Nordstrom Inc. (JWN) grew by 7.3% for the four-week period ended February 26, 2011. Total retail sales in February 2011 improved 12.3% to $606 million from $539 million in February 2010.
As of March 3, 2011, Nordstrom had 115 stores, 87 Nordstrom Racks, 2 Jeffrey boutiques and 1 clearance store. Same-store sales at Nordstrom stores (includes Nordstrom full-line stores and Direct) increased 9.6% in February while Nordstrom Rack edged up 1.6%.
Guidance
The company forecasts fiscal 2011 earnings per share in the range of $2.95 to $3.10. The Zacks Consensus Estimate is at $3.06.
Peer
Gap Inc. (GPS), a competitor of Nordstrom, posted a February same-store sales decline of 3% while net sales came in at $821 million, compared with $838 million in the year-ago period.
Conclusion
Nordstrom remains focused on expanding the store network to drive top-line growth. However, 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.
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NORDSTROM INC (JWN): Free Stock Analysis Report
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