On Thursday after the market close, Nordstrom reported earnings of 43 cents a share excluding one-time items, beating Wall Street estimates for 27 cents a share. But shares sunk as much as 7 percent in after-hours trading as Nordstrom's same-store sales fell 0.8 percent.
A bright spot for Nordstrom was online, where sales grew 11 percent for its namesake site. Digital sales at Nordstrom Rack and HauteLook rose a combine 19 percent.
While stores such as Macy's (M - Get Report) , Sears Holdings Corp. (SHLD) , J.C. Penney (JCP - Get Report) and others have been shuttering stores, Nordstrom hasn't done so in nearly the same numbers. When asked about store closings on the conference call, Erik Nordstrom, co-president and director, said that even if a single store in a market isn't performing well, the company looks at the overall service it provides to the customer. If a poorly performing store is the fifth or sixth in a market, a different decision could be made.
"You really want to look at the store fleet holistically," said Nordstrom. "How you can best serve the customer?"
Meanwhile, retailer Macy's, which reported Thursday, also continues to struggle. It reported first-quarter earnings of 24 cents a share, a far cry from the earnings of 36 cents a share analysts expected. The retailer's revenue declined 7.5 percent to $5.34 billion, compared to Wall Street's estimates for $5.48 billion.
The struggling mall-based retailer also saw its same-store sales drop 5.2 percent for the three months ended April 29, its transactions decline by 7.5 percent and inventory was higher by 1 percent compared to the fourth quarter. Macy's said it saw increased pressure on its watch sales, a troubling trend that led to Fossil's (FOSL - Get Report) disastrous first quarter.
Macy's shares finished Thursday's session down 17 percent at $24.35.
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