WASHINGTON (dpa-AFX) - Apparel store chain Nordstrom Inc. (JWN), Thursday reported an increase in profit for the second quarter, driven largely by sales growth as well as improved same-store sales. Earnings for the quarter came in ahead of Wall Street' estimates, but revenues came in short of expectations.
The high-end retailer cut its sales outlook for fiscal year 2013, sending its shares down three percent in after-hours trade on the New York Stock Exchange.
Nordstrom said total revenues for the quarter grew to $3.20 billion from $3.01 billion last year. Analysts estimated revenues of $3.29 billion for the quarter.
Total company same-store sales for the second quarter increased 4.4 percent compared to last year's increase of 4.5 percent.
Nordstrom in a statement said 'sales trends throughout the second quarter showed moderate improvement relative to the first two months of the year but remained softer than anticipated.'
Gross margins inched down to 35.5 percent from 35.6 percent last year, due largely to higher costs attributed to promotion and discounts. Selling, general and administrative expenses, as a percentage of sales, narrowed down to 26 percent from 26.6 percent last year.
Seattle, Washington-based Nordstrom's second-quarter profit improved to $184 million or $0.93 per share from $156 million or $0.75 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.88 per share for the quarter. Analysts' estimates typically exclude special items.
Going forward, Nordstrom trimmed its financial outlook for the full year 2013, citing current sales trends. For the full year 2013, the company now expect earnings in the range of $3.60 to $3.70 per share and revenue growth of 3 to 4 percent. Analysts currently estimate earnings of $3.78 per share and revenue growth of 5.30 percent.
Previously, the company expected earnings of $3.65 to $3.80 per share and revenue growth of 4 to 6 percent.
The company also trimmed its full-year same-store sales expectations to a range of 2 to 3 percent from its prior outlook of 3 to 5 percent.
JWN closed Thursday's trading at $59.33, down $0.21 or 0.35%, on the NYSE. The stock further lost $1.59 or 2.68% in after hours.
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