Nordstrom Inc (NYSE:JWN) Q3 2017 Earnings Conference Call Transcript
Nov 09, 2017 • 04:45 pm ET
Greetings. And welcome to the Nordstrom Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. We will begin with prepared remarks followed by a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded.
At this time, I'll turn the call over to Trina Schurman, Director of IR for Nordstrom. You may begin.
Good afternoon and thank you for joining us. Today's earnings call will last 45 minutes and will include 30 minutes for your questions. Before we begin, I want to mention that we'll be referring to slides which can be viewed by going to nordstrom.com in the IR section. Our discussion may include forward-looking statements, so please refer to the slide showing our safe harbor language.
As a reminder on October 16th, the Company announced that members of the Nordstrom family have suspended active exploration for the balance of the year, of the possibility of proposing a transaction to take the Company private. The Company does not plan to comment further on the process including on today's call.
Participating in today's call are Blake Nordstrom, Co-President and Anne Bramman, CFO, who will discuss the Company's third quarter performance and the outlook for fiscal year 2017. Joining during the Q&A session will be Pete and Erik Nordstrom, Co-Presidents; and Jamie Nordstrom, President of Stores.
With that, I'll turn the call over to Blake.
Good afternoon, and welcome to our call. In addition to reviewing the third quarter results, I'll share some key initiatives that we're focusing on for the remainder of the year.
For the third quarter, we reported earnings per diluted share of $0.67. We estimate these earnings were reduced by roughly $0.04 from hurricanes Maria, Irma and Harvey which affected our stores in Puerto Rico, Southeast Florida and Houston. The damage in Puerto Rico was particularly extensive, requiring us to close the store as we continue our repair efforts. We're grateful to our teams in each of these communities who have extended themselves to help our employees and customers.
We reported total sales growth of 2% and a comp decrease of 0.9%. Lost sales from the hurricanes accounted for approximately $20 million or 60 basis points. When adjusting for this impact, our overall sales performance was generally in line with our expectations. This reflected consistent trends in our full-price business, while on off-price, we experienced some deterioration relative to recent trends.
In our Nordstrom brand, total sales decreased 1.2% and comps decreased 1.9%. Sales in our full-line stores remained consistent with current trends, as we expected, Nordstrom.com sales reflected a higher volume of returns associated with Anniversary sales last quarter. When we combine July and August to adjust for this timing impact, Nordstrom.com grew at a mid-teens rate.
In our Nordstrom Rack brand, total sales increased 5.5% and comps increased 0.8%, which reflected a step down from recent trends. In hindsight, our sales plan at the beginning of the year was too aggressive. As a result, we found ourselves over-inventoried