Same-store sales for the five-week period ending January 1, 2011, of Nordstrom Inc. (JWN) grew 8.4%. Total retail sales in December 2010 improved 11.9% from $1.25 billion in December 2009 to gross $1.39 billion.
The company reported an increase in same-store sales of 8.3% year to date. Total retail sales improved 12.8% to $5.70 billion from $7.72 billion for the same period in fiscal 2009.
As of January 1, 2011, Nordstrom had 115 Full-line stores and 89 Rack and other stores. Same-store sales at Full-line stores in December increased 6.4% while Rack store reported a 7% climb.
Nordstrom expects same-store sales to increase 6% in fiscal 2010. The company also guides fiscal 2010 earnings in the band of $2.60–$2.65 per share.
The Zacks Consensus Estimate for fiscal fourth-quarter 2010 is 95 cents per share. For fiscal years 2010 and 2011, the Zacks Consensus Estimates are, respectively, $2.67 per share and $3.02 per share.
Gap Inc. (GPS), competing with Nordstrom, posted a December same-store sales decline of 3% while its net sales for the month remained flat with the prior-year period.
Abercrombie & Fitch (ANF), another of Nordstrom's retail peers, posted a smart same-store sales increase of 15% for December 2010. Net sales increased 26% year over year totaling $596.3 million for the five-week period ended January 1, 2011
Though Nordstrom remains focused on expanding the store network to drive top-line growth, a sluggish discretionary spending environment, intense competition and exposure to seasonal fluctuations keep us on the sidelines.
We maintain our “Neutral” recommendation on Nordstrom. The quantitative Zacks #3 Rank (short-term Hold rating) for the company indicates no clear directional pressure on the stock over the near term.
Based in Seattle, Washington, Nordstrom Inc. is a leading fashion specialty retailer in the U.S., offering high quality apparel, shoes, cosmetics and accessories for men, women and kids. The company offers both branded and private label merchandise, as well as a private label card, two Nordstrom VISA credit cards and debit cards for Nordstrom purchases.
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