Nordstrom's Upscale Results Lift Shares

The high-end retailer beats estimates and raises guidance.
Publish date:

Updated from Nov. 20


(JWN) - Get Report

stock jumped 9% in recent trading on Friday after the chi-chi department store chain blew through analysts' estimates by more than doubling its earnings.

In recent trading, Nordstrom shares were up $2.86, or 9%, to $34.68. The company reported after the bell on Thursday and traded above $33 in after-hours trading Thursday night.

Third-quarter earnings at Nordstrom at more than doubled on a 7% gain in sales.

In its quarter ended Nov. 1, the upscale department store chain earned $45.47 million, or 33 cents a share, on $1.42 billion in revenue. The bottom-line result far exceeded the company's performance in the year-ago period, when it earned $18.43 million, or 14 cents a share.

The company's per share profits also zoomed past Wall Street's estimates and its own guidance.

Analysts surveyed by Thomson First Call expected the company to earn 22 cents a share on $1.41 billion in sales. Nordstrom had previously projected that it would earn 16 cents to 20 cents a share.

Following its strong report, Nordstrom raised its outlook for the fourth quarter and the full year. The company now expects to earn 54 cents to 58 cents a share in the holiday quarter on a same-store sales gain of 2% to 4%. For the full year, the company forecasts earnings of $1.55 to $1.59 a share on a 1% to 3% increase in same-store sales.

Same-store sales compare results in like outlets open for more than one year.

Wall Street was looking for earnings of 51 cents in the fourth quarter and a $1.41 for the year on sales of $1.85 billion and $6.42 billion, respectively. Nordstrom previously said it expected to earn $1.33 to $1.37 for the year.