FILE PHOTO: The company logo for Nordstrom Inc, is displayed on a screen at the New York Stock Exchange (NYSE) in New York, U.S., October 22, 2019. REUTERS/Brendan McDermid
(Reuters) – Nordstrom Inc (JWN.N) reported quarterly profit above Wall Street expectations on Thursday, as it sold more apparels at its off-price stores and kept inventories in check, sending the retailer’s shares up about 10% after the bell.
The company raised the lower-end of its full-year profit to $3.30 to $3.50 per share from the prior forecast of $3.25 to $3.50 per share and said the impact of U.S. tariffs would not be significant for the year.
Net sales at its off-price stores rose 1.2% in the third quarter and digital sales climbed about 7%.
To boost online sales, the retailer has been rolling out inventory-free stores called Nordstrom Local, which serve as pickup points for online orders and returns, while also providing personal styling and tailoring options.
It opened a flagship women store in New York last month with a suite of services including restaurants and has entered into a partnership with clothing rental firm, Rent The Runway.
Excluding items, the company earned 81 cents per share, beating analysts’ expectation of 64 cents.
Total revenue fell 2% to $3.67 billion in the third quarter ended Nov. 2, in line with the analysts’ average estimate, according to IBES Refinitiv data.
Reporting by Soundarya J in Bengaluru; Editing by Arun Koyyur