Sponsors
Billabong ▲ +0.035 | PPR ▲ +0.20 | American Apparel ▲ +0.008 | The Buckle ▼ -0.07 | Columbia ▼ -0.49 | Deckers Outdoor ▼ -0.13 | Dicks ▼ -0.15 | Foot Locker ▲ +0.12 | Genesco ▼ -2.64 | Iconix Brand Group ▲ +0.13 | Jarden Corp ▲ +0.16 | Nordstrom ▼ -0.39 | Luxottica ▲ +0.57 | Nike ▼ -0.27 | Pacific Sunwear ▼ -0.22 | Skullcandy ▲ +0.09 | Sport Chalet - 0 | Urban Outfitters ▲ +0.02 | VF Corp ▲ +0.30 | Quiksilver ▼ -0.02 | Zumiez ▲ +0.20 | Macys ▼ -0.07 | Tillys ▼ 0.00 |
Ticker Sponsor
Professional Services
Friedman Stroffe & Gerard, P.C.

FSG’s Action Sports Practice Group provides legal services to the action sports industry. Our clients include surfers, skiers, snowboarders and skaters, as well as sponsors and leading apparel companies. Our attorneys serve in positions with industry organizations such as the Association of Surfing Professionals. We know your business and can provide full-service legal solutions to meet your organizational needs.

More Professional Services...
Readers Say
I waited too long to sign up for Executive Edition
I waited too long to sign up for Executive Edition

I read Shop-Eat-Surf at every opportunity, and I waited too long to sign up for the Executive Edition. It’s timely, relevant and clearly “from the industry, for the industry.

- By Andy Laats, President, Nixon
The most up-to-date information
The most up-to-date information

“Shop-Eat-Surf is a great source for the most up to date information of what is going on in our industry. I always enjoy reading the articles and appreciate the effort from Tiffany and her team."

- By Richard Woolcott, CEO and Founder, Volcom
Industry Insight

SIA SNOW SHOW: Early Bird rates thorugh Sept. 29 for Denver hotel rooms during 2015 show, from Jan. 28 - Feb. 3.

AGENDA: Video recaps, 2015 show dates, "Love Made Me Do It" women's networking series on Wednesday.

Details on Industry Insight.


Tiffany Montgomery
Print This Article

Nordstrom reports Q4 and 2011 financial results

By Press Releases
February 16, 2012 1:35 PM

Press Release:

 

SEATTLE--(BUSINESS WIRE)--

Nordstrom, Inc. (NYSE: JWN - News) today reported net earnings of $236 million, or $1.11 per diluted share, for the fourth quarter ended January 28, 2012. This represented an increase of 1.7 percent compared with net earnings of $232 million, or $1.04 per diluted share, for the same quarter last year.

 

Fourth quarter same-store sales increased 7.1 percent compared with the same period in fiscal 2010. Net sales in the fourth quarter were $3.17 billion, an increase of 12.5 percent compared with net sales of $2.82 billion during the same period in fiscal 2010. Additionally, total net sales of $10.50 billion for fiscal 2011 were the highest in the company’s history and represented two consecutive years of approximately 13 percent annual growth.

 

FOURTH QUARTER SUMMARY

 

Nordstrom’s fourth quarter performance was consistent with the strong trends the company experienced throughout 2011. The company achieved record sales for fiscal 2011, while continuing to make significant investments in the business to evolve with customers and to enhance its platform for sustainable, profitable growth.

 

Nordstrom net sales, which include results from the full-line and Direct businesses, increased $232 million, or 9.8 percent, compared with the same period in fiscal 2010. Same-store sales increased 8.4 percent. Top-performing merchandise categories included Handbags, Designer and Cosmetics. The South and Midwest regions were the top-performing geographic areas for full-line stores relative to the fourth quarter of 2010. The Direct channel continued to show strong performance, with 35 percent quarter-over-quarter sales growth.

 

Nordstrom Rack net sales increased $85 million, or 17.7 percent, compared with the same period in fiscal 2010, with same-store sales up 2.2 percent.

 

Gross profit, as a percentage of net sales, increased 12 basis points compared with last year’s fourth quarter. The improvement was driven by the ability to leverage buying and occupancy expenses during the quarter.

 

Retail selling, general and administrative expenses increased $121 million compared with last year’s fourth quarter. The increase was primarily attributable to various customer facing e-commerce initiatives, including HauteLook, and sales growth in both existing and new stores.

 

In the Credit segment, customer payment rates improved, resulting in favorable trends in delinquency and write-off rates, and a corresponding decrease in finance charge revenue. Annualized net write-offs were 5.4 percent of average credit card receivables during the quarter, down from 7.2 percent in the fourth quarter of 2010. Delinquencies as a percentage of credit card receivables at the end of the fourth quarter were 2.6 percent, down from 3.0 percent at the end of the fourth quarter of 2010. As a result of these improvements, the overall performance of the credit portfolio and economic trends, the reserve for bad debt was reduced by $10 million.

 

Earnings before interest and taxes increased $11 million to $417 million, or 12.8 percent of total revenues, from $406 million, or 13.9 percent of total revenues, in last year’s fourth quarter.

 

FULL YEAR RESULTS

 

For the fiscal year ended January 28, 2012, net earnings were up $70 million to $683 million, an increase of 11.4 percent compared with net earnings of $613 million for the fiscal year ended January 29, 2011. Earnings per diluted share for the same periods were $3.14 and $2.75, respectively.

 

Full year same-store sales increased 7.2 percent compared with fiscal 2010. Net sales for the year were a record $10.50 billion, an increase of 12.7 percent compared with prior year net sales of $9.31 billion.

 

CAPITAL INVESTMENT AND EXPANSION UPDATE

 

In fiscal 2012, the company’s capital expenditures, net of property incentives, are expected to total between $480 and $520 million, compared with approximately $430 million in fiscal 2011. The majority of the increase is attributable to investments in e-commerce.

 

 

FISCAL YEAR 2012 OUTLOOK

 

In 2012, Nordstrom plans to continue to invest and build upon the foundation for sustainable growth in top-line revenues, earnings and Return on Invested Capital (“ROIC”). For the 2012 fiscal year, Nordstrom expects same-store sales to increase 4 to 6 percent, and earnings per diluted share in the range of $3.30 to $3.45 for the full year. The expectations include the impact of the 53rd week, which will add $160 to $170 million to total sales and approximately $0.03 to $0.05 to earnings per diluted share.

 

The company’s expectations for fiscal 2012 are as follows:

 

Same-store sales 4 to 6 percent increase

 

Credit card revenues $0 to $10 million increase

 

Gross profit (%) 5 to 35 basis point decrease

 

Retail selling, general and administrative expenses ($) $265 to $330 million increase

 

Credit selling, general and administrative expenses ($) $10 to $20 million increase

 

Interest expense, net $25 to $30 million increase

 

Effective tax rate 39.0 percent

 

Earnings per diluted share $3.30 to $3.45

 

Diluted shares outstanding 213.0 million

 

ABOUT NORDSTROM

 

Nordstrom, Inc. is one of the nation’s leading fashion specialty retailers. Founded in 1901 as a shoe store in Seattle, today Nordstrom operates 225 stores in 30 states, including 117 full-line stores, 104 Nordstrom Racks, two Jeffrey boutiques, one treasure&bond store and one clearance store. Nordstrom also serves customers through Nordstrom.com and through its catalogs. Additionally, the Company operates in the online private sale marketplace through its subsidiary HauteLook. Nordstrom, Inc.’s common stock is publicly traded on the NYSE under the symbol JWN.

 


More on: Nordstrom, earnings

Articles You Might Have Missed