Originally published May 15, 2008 at 12:00 AM | Page modified May 15, 2008 at 6:16 PM
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'...
The Associated Press
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.
Copyright © 2008 The Seattle Times Company
UPDATE - 09:46 AM
Exxon Mobil wins ruling in Alaska oil spill case
UPDATE - 09:32 AM
Bank stocks push indexes higher; oil prices dip
UPDATE - 08:04 AM
Ford CEO Mulally gets $56.5M in stock award
UPDATE - 07:54 AM
Underwater mortgages rise as home prices fall
NEW - 09:43 AM
Warner Bros. to offer movie rentals on Facebook

general classifieds
Garage & estate salesFurniture & home furnishings
Electronics
just listed
Adorable Bull Terrier puppies for good home...
AKC Great Dane Puppies Ready
AKC PAL/ILP Registered Labs
More listings
POST A FREE LISTING
- Lakewood cop accused of embezzling $150K meant for slain officers' families
- 3 big health insurers stockpile $2.4 billion as rates keep rising
- Social worker recounts minutes before Powell fire
- Agency set to investigate handling of 911 call about Josh Powell
- Quick decisions: How Washington hired its new football staff
- Historic day for gay marriage as another fight looms
- Justin Wilcox's versatile defensive style is the right fit for Huskies | Jerry Brewer
- Council members get briefing on arena proposal, minus details
- It's Terrence Time: Enigmatic Ross leads Huskies
- $25B settlement reached over foreclosure abuses
- Gay-marriage bill passes House, awaits Gregoire's signature
504 - Wanted in Seattle classrooms: more teachers of color
398 - Council members get briefing on arena proposal, minus details
346 - AP Source: Obama to change birth control rule
322 - Oregon live game thread
155 - Worker: Josh Powell told son he had 'surprise'
112 - Rough road again
108 - A few late-night notes
96 - USA Today further spells out how Mariners, handful of clubs next in line for huge cash windfall
76 - Marijuana legalization initiative set to go on Nov. ballot
74
- Wanted in Seattle classrooms: more teachers of color
- State Medicaid program to stop paying for unneeded ER visits
- 3 big health insurers stockpile $2.4 billion as rates keep rising
- Economy, blogs give survivalists new reason to look to Northwest
- State's share of mortgage settlement: $648 million
- Bellevue College adds a third bachelor's degree program
- Darren Berg gets 18-year sentence for Ponzi scheme
- One man's audacious pursuit of sailing history
- $25B settlement reached over foreclosure abuses
- 'Gauguin and Polynesia': dazzling mix-and-match | Art review
