Nordstrom rebounded to a -5% dip in share price on Friday afternoon, after plunging 10% in morning trading, following the release of its fiscal first-quarter earnings on Thursday, May 17. The Seattle-based retailer missed on same-store sales, coming in with a slight increase of .6% versus the 1% estimate.
Other disappointments in the first quarter ended May 5, 2018 included a dip in online sales, which were up 18% this quarter, compared with a rise of 25% for the comparable period last year. Also taking a hit were gross profits, as a percentage of net sales, of 34.1%, which fell 21 basis points compared with the same period last year. According a press release, the company faltered here due to store opening expenses, including higher occupancy costs for U.S. and Canadian Rack openings and the planned pre-opening expenses connected to the Nordstrom Men's Store in New York City last month.
The retailer's net income for the quarter came in at $87 million, or 51 cents per share, from $63 million, or 37 cents per share, last year. The results included a interest expense charge of $18 million related to a debt refinancing. Earnings before interest and taxes were $153 million, or 4.4% of net sales. During the same period last year, the figures were $151 million, or 4.6% of net sales.
Nordstrom's total revenue increased to $3.56 billion from $3.35 billion, beating analysts' average estimate of $3.46 billion.
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