One of the leading fashion specialty retailers in the United States, Nordstrom Inc. (JWN), once again reported a robust growth in its comparable store sales for the four-week period ended January 28, 2012. The January results marked the 28th consecutive month of comparable-store sales growth.
The company’s January same-store sales grew by 5% compared with 4.8% in the four-week period ended January 29, 2011. Total retail sales climbed 13.2% to $688 million from $607 million for the four-week period ended January 29, 2011. Strong sales of handbags and cosmetics along with better performance in the South and Midwest facilitated the company to post solid January sales results.
Fourth Quarter 2011 Sales
The company’s comparable sales for the fourth quarter increased 7.1% from the prior-year quarter. Total retail sales during the period surged 12.5% to $3.17 billion compared with a total retail sales of $2.82 billion in the prior-year quarter.
Fiscal 2011 Sales
Moreover, Nordstrom’s fiscal 2011 comparable sales grew by 7.2% year over year. Total retail sales for the period increased 12.7% to $10.50 billion from $9.31 billion reported in the prior-year period.
As of January 28, 2012, Nordstrom had 117 Nordstrom full-line stores, 104 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure&bond store and 1 clearance store. Same-store sales at Nordstrom stores (including Nordstrom full-line stores and Direct) increased 5.3% in January, while Nordstrom Rack reported a rise of 1.3% for the four-week period ended January 28, 2012.
During the fourth quarter, the company’s same-store-sales increased 8.4% at Nordstrom Stores and 2.2% at Nordstrom Rack. For fiscal 2011, the company reported an increase of 8.2% in same-store sales at Nordstrom stores and a rise of 3.7% at Nordstrom Rack.
Peer Performance
One of Nordstrom’s competitors,Gap Inc.’s (GPS) registered a decline of 4% in same-store sales in January 2012, while its net sales came in at $833 million compared with $843 million in the year-ago period.
Conclusion
Nordstrom remains focused on expanding its store network to drive top-line growth. However, a sluggish discretionary spending environment, intense competition and exposure to seasonal fluctuations will keep us on the sidelines.
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.
Nordstrom maintains a Zacks #3 Rank, which translates into a short-term Hold rating. Our long-term recommendation on the stock remains Neutral.
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