Nordstrom profit sinks 24%, but better than analysts forecast

Luxury retailer Nordstrom said its profit fell 24 percent in the first quarter as recession rumblings in the U.S. crimped even wealthier consumers' shopping habits.

Nordstrom's earnings fell to $119 million, or 54 cents a share, from $157 million, or 60 cents a share in the same three months last year. Revenue slipped 4 percent to $1.88 billion from $1.95 billion a year ago.

Analysts had predicted Nordstrom would earn a profit of 49 cents a share on sales of $1.9 billion, according to a Thomson Financial survey.

The results were released after the stock market closed. Nordstrom shares climbed $1.05 in early after-hours trading after finishing the regular session up $1.15, or 3.2 percent, at $37.29.

The company said same-store sales, a key retail metric that measures sales at stores open for more than a year, fell 6.5 percent for the quarter, below the expected 3 to 5 percent drop.

Nordstrom said margins were lower than a year ago, hurt by merchandise markdowns.

For the current second quarter, Nordstrom forecast a profit of 65 cents to 70 cents a share. The midpoint of that range is less than Wall Street's current view for 69 cents a share.

Nordstrom cut its earnings outlook for the full year to $2.65 to $2.89 a share, from an earlier forecast for $2.75 to $2.90 a share. Analysts are currently looking for $2.76 a share.

The retailer said it expects same-store sales to fall 5 percent to 7 percent in the quarter, and 4 percent to 6 percent in the year, a steeper drop than previously expected.

Nordstrom opened four new stores in the first three months of the year.