Sterne Agee Raises Estimates On Nordstrom

According to Sterne Agee, Nordstrom JWN estimates are raised. Sterne Agee said that sales of $2,229M (+12% y/y) benefitted from SSS of 6.5%, which in turn reflected both a continuation in transaction growth and a meaningful inflection in ATV. “Retail GPM increased by 15 bps y/y due to leverage of buying and occupancy expenses, while product margins were flattish. Retail SG&A of $601M, ex-purchase accounting charges, delivered 18 bps due to continued heavy reinvestment and timing of marketing investments. Credit SG&A declined $37M due to reserve releases, contributing $0.10 of the EPS growth. Inventory sales growth spread (430 bps) remains healthy and turns continue to improve.” Nordstrom closed yesterday at $49.17.