Nordstrom quarterly profit beats estimates; share jump 10%

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.

Nordstrom’s upbeat guidance comes in contrast to profit forecast cuts by larger rivals Macy’s Inc (M.N) and Kohl’s Corp (KSS.N) ahead of the crucial holiday season.

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

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