Nordstrom's profit climbs 22%

.

Nordstrom said today that third-quarter earnings rose 22 percent, helped by an extra week of sales the company counted in the quarter compared with a year ago, but the luxury retailer lowered its outlook just days before the official start of the Christmas shopping season.

Nordstrom said its profit rose to $165.7 million, or 68 cents a share, compared with $135.7 million, or 52 cents a share, during the same period last year.

Results included a gain of 9 cents a share related to the sale of Nordstrom's Façonnable business, which closed in the quarter.

Excluding that gain, quarterly earnings totaled 59 cents a share.

On that basis, results topped Wall Street's expectations. Analysts polled by Thomson Financial had forecast a profit of 52 cents a share.

Revenue rose 5 percent to $1.97 billion from $1.87 billion in the year-ago quarter, just ahead of analysts' estimate for $1.96 billion in sales.

Same-store sales, a key indicator of a retailer's performance, rose 2.2 percent for the quarter, compared with last year. Same-store sales measures growth at existing stores, excluding newly opened ones and stores that have closed during the year.

Designer items, women's accessories and men's apparel sold more briskly than other categories in the quarter, Nordstrom said.

Nordstrom said its gross profit decreased in the quarter, hurt by markdowns of extra inventory. In a conference call, Chief Financial Officer Mike Koppel said inventory per square foot was 7 percent higher in the quarter than a year ago and the company has since tried to match inventory with demand from shoppers.

The retailer opened three stores in the quarter, including its first Boston-area location.

For the fourth quarter, Nordstrom said it expects to post a profit of 88 cents to 92 cents a share, lower than its previous outlook of 99 cents to $1.02. For the full year, the company slashed guidance to $2.78 to $2.82 a share, from $2.80 to $2.86.

The company also cut back sales expectations and said quarterly same-store sales will be flat, with December sales rates falling behind those from a year ago.

Nordstrom released its financial results after the stock market closed. Its shares gained $3.42, or 11.2 percent, to $33.94 in after-hours electronic trading, after dropping $1.99, or 6.1 percent, to end the regular session at $30.52.