WASHINGTON (dpa-AFX) - Shares of Nordstrom Inc. (JWN) jumped 12 percent in extended hours on Thursday after the department store chain reported a second-quarter profit and revenues that trumped Wall Street estimates. The company also lifted its full-year financial outlook.
Seattle-based Nordstrom's second-quarter profit rose to $162 million or $0.95 per share from $110 million or $0.65 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.84 per share. Analysts' estimates typically exclude special items.
Revenues for the quarter rose 7.1 percent to $4.07 billion from $3.79 billion last year. Analysts had a consensus revenue estimate of $3.96 billion. Comparable sales for the second quarter increased 4 percent.
Second-quarter gross margins rose 91 basis points to 35.0 percent, the increase was driven by higher product margins from continued regular price selling trends and leverage on occupancy expenses. Selling, general and administrative expenses, as a percentage of sales, increased 71 basis points to 31.0 percent.
Looking forward to the full year, Nordstrom now expects earnings of $3.50 to $3.65 per share, up from prior forecast of $3.35 to $3.55 per share. Revenues are now expected to be $15.4 billion to $15.5 billion, up from previous outlook of $15.2 billion to $15.4 billion. Analysts currently estimate earnings of $3.46 per share and revenues of $15.78 billion.
JWN closed Thursday's trading at $47.56, up $3.33 or 7.53%, on the NYSE. The stock further gained $5.31 or 11.16% in the after hours trade.
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