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$JWN updated its FY17 expectations for an increase in net sales of approx. 4.2%, inclusive of the 53rd week, and an increase in comparable sales of approx. 0.5%. The company expects full-year diluted EPS to be $2.90-2.95, compared with its prior outlook of $2.85-2.95.
$JWN's net sales grew 2.5% and comparable sales grew 1.2% for the nine weeks ended Dec. 30, 2017, vs. prior-year period. In the Nordstrom brand, including US and Canada full-line stores and Nordstrom.com, net sales when combined with Trunk Club, rose 0.7% and comp sales rose 1%. For Nordstrom Rack, net sales grew 8.2% and comp sales grew 2.9%.
$JWN said it will hire 250 employees for its first stand-alone Men's Store in Manhattan. The company appointed Cailin Caro as store manager of the NYC Men's Store, and company veteran Chris Wanlass as VP of its Manhattan full-line stores.
$JWN said it will hire 250 employees for its first stand-alone Men's Store in Manhattan, which will open on Broadway between West 57th and West 58th Streets in April 2018. The company will also open a New York City flagship store in 2019 at the base of Central Park Tower, an Extell Development Company Project.
Nordstrom Family has called off the proposal of taking $JWN private in 2017. Nordstrom Rack is expected to bring sales of $5Bil in 2017. Nordstromrack.com and HauteLook business is the fastest-growing business in Nordstrom's history, which is expected to touch $1Bil. Primary focus for the company is going to be looking at the business by markets.
Seattle-based $JWN's same-store sales fell 0.9% in the third quarter, a key metric which compares the store sales opened for more than a year. Revenues rose 2% to $3.5Bil in 3Q, but still hurricanes dented sales by approx. $20MM. Profits came in at $0.67 per share vs. $0.10 loss in 3Q16 due to an impairment charge relating to Trunk Club of $197MM.
Active Rewards customers in US and Canada rose 39% to 9.9MM. Nordstrom Rewards customers brought in 51% of 3Q sales. $JWN's online sales seem to be paying off. Nordstrom.com's YTD online sales grew 14% and Nordstromrack.com/HauteLook saw 26% growth. For FY17, EPS is expected to come in between $2.85-2.95 vs. prior outlook of $2.85-3.
$JWN said it is on track regarding the timing of its store opening in New York. The company is planning to open a Men's store in March 2018 and Women's store in fall of 2019. $JWN said there was a ramp up this year of around $30MM with regard to investment and the company is still on track with that for this year as well.
$JWN said its Rack business is an important way to attract new customers to Nordstrom. The company opened six stores this spring with 11 more opening this fall, which will bring its total Rack store count to 232 at year end. These stores incorporate its latest store designs with improvements to the layout and fitting room experience.
Looking to the rest of 2017, $JWN continues to focus on enhancing the customer experience and reaching new customers by leveraging its digital capabilities and investing in its top markets. As part of customer strategy, the company is continually testing and rolling out new ways to connect the physical and digital shopping experiences.
$JWN now sees FY17 net sales growth of about 4% compared to prior outlook of 3-4%. The company narrowed its 2017 EPS guidance to $2.85-3.00 from $2.75-3.00, and its Retail EBIT estimate to $790-840MM from $780-840MM. $JWN still sees its comparable sales growth to be about flat, while lifting Credit EBIT estimate to about $145MM from about $140MM.
$JWN's retail gross profit, as a percentage of net sales, for 2Q17 fell 25 basis points to 34.1% from last year. This primarily reflected higher occupancy expenses related to new store growth for Nordstrom Rack and Canada in addition to higher loyalty expenses during the Anniversary Sale. This was partially offset by improved merchandise margins.
$JWN reported a drop in 2Q17 earnings due to planned technology, occupancy and supply chain expenses supporting its growth initiatives. Net income fell to $110MM or $0.65 per share from $117MM or $0.67 per share last year. Revenue grew to $3.8Bil from $3.65Bil. Comparable sales increased 1.7%.