Associated Press
SEATTLE — Shares in Nordstrom Inc. rose nearly 10 percent in after-hours trading after the clothing store chain said Thursday it beat its severely reduced earnings expectations for the third quarter despite a weak retail environment.
Still, Nordstrom reported a slight decline in sales compared to the same period last year.
For the quarter ended Oct. 31, Nordstrom reported earnings of $10.5 million, or 8 cents a share, compared with a loss of $3.3 million, or 3 cents a share, a year earlier.
The 2000 losses included one-time charges of $44 million, or 21 cents a share.
Analysts polled by Thomson Financial/First Call were expecting profits of 4 cents a share after Nordstrom warned last month that it would not meet its original earnings goals. Nordstrom said it expected earnings to fall to between 3 cents and 6 cents a share for the quarter, down from an earlier estimate of 16 cents to 19 cents.
In October, the company said it would cut 2,500 jobs because of the weak economy made worse by the Sept. 11 terrorist attacks.
Net sales for the quarter were down 1.8 percent, to $1.2 billion, compared with $1.3 billion for the same period last year. More troubling, sales in comparable stores declined 5.7 percent.
Nordstrom was able to gain some ground with a special fall sale.
"During a difficult retail environment, I am pleased with how quickly and successfully our team responded," Nordstrom President Blake Nordstrom said.
In the fourth quarter, the company said it expects earnings of between 27 cents and 31 cents a share. Analysts polled by Thomson Financial/First Call had been predicting earnings of 19 cents a share.
Nordstrom said it expects same-store sales to further decrease.
For the nine months ended Oct. 31, Nordstrom earned $73.9 million, or 55 cents a share, on net sales of $4 billion, compared with a profit of $74.9 million, or 58 cents a share, on sales of $3.9 billion a year earlier. Comparable store sales declined by 2.7 percent.
Shares in Nordstrom were up 46 cents at $17.82 at the close Thursday on the New York Stock Exchange. In after-hours trading, shares rose another $1.68 to $19.50.
Copyright ©2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.