Upscale department store chain Nordstrom Inc. reported a 47 percent jump in second-quarter earnings on solid sales growth, and it raised its profit outlook for the year.
The Seattle-based company said Thursday it earned $162 million, or 95 cents per share, in the quarter that ended Aug. 4. That’s up from $110 million, or 65 cents per share, a year ago.
The results topped the 83 cents per share that analysts surveyed by Zacks Investment Research expected.
Nordstrom’s stock was up almost 8 percent in after-hours trading following the release of the earnings report.
The department store operator posted revenue of $4.07 billion in the latest quarter, which also beat Street forecasts. Six analysts surveyed by Zacks expected $3.99 billion.
Department store companies have been under pressure because more people are shopping online or at discount retailers. Nordstrom said 34 percent of its sales came through digital channels in the quarter, up from 29 percent a year ago.
Nordstrom said it now expects full-year earnings to be $3.50 to $3.65 per share, with revenue in the range of $15.4 billion to $15.5 billion. Previously it had predicted earnings between $3.35 and $3.55 and revenue between $15.2 billion and $15.4 billion.
In its full-price division, which consists of NordstromU.S. full-scale stores, Nordstrom.com, Trunk Club, revenue at stores open at least a year rose 4.1 percent. The top merchandise categories were children’s clothes and beauty.
In the off-price sector, which consists of NordstromU.S. Rack stores, Nordstromrack.com/HauteLook and Last Chance clearance stores, comparable sales increased 4 percent.
This article provided by NewsEdge.