Nordstrom soars on earnings beat
Sales rose solidly in the retailer's last quarter, while earnings topped the previous profit guidance.
By Christopher Freeburn
Shares of high-end retailer Nordstrom (JWN) jumped more than 12 percent in Friday trading to $69.35 after the company announced fiscal first-quarter results that surpassed forecasts.
During the quarter that ended on May 3, Nordstrom said it earned $140 million, a 3.5 percent decline from $145 million in the year-ago period.
Earnings came in at 72 cents a share, topping Nordstrom's profit guidance of between 60 cents and 70 cents, The Wall Street Journal noted.
Nordstrom reported first-quarter sales of $2.84 billion, up 6.8 percent from the prior-year period. Same-store sales climbed 3.3 percent during the quarter. Including credit card revenue, the company posted total first-quarter revenue of $2.93 billion. Wall Street had expected revenue of $2.86 billion.
The retailer also indicated that it is looking for a financial partner for its $2 billion Nordstrom credit card receivables business.
Nordstrom said that common stock repurchases during the quarter totaled $192 million. The company's current share repurchase program still has $478 million authorized for stock buybacks.
On Thursday, the stock closed at $61.49 per share.
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