Here are some details from the Nordstrom earnings release and conference call yesterday.
The business now and the rest of 2008
- The company said its biggest short term challenges are in women’s apparel and sales in California.
- For the first quarter, Nordstrom expects same-store sales to fall 3 percent to 5 percent.
- For 2008, Nordstrom is planning for flat to negative 2 percent same-store sales.
- The company sees business improving in the back half of the year.
- Early trends for spring that are selling: Color, crop jackets, denim and non-denim bottoms for the first time in a while.
Fourth quarter and fiscal 2007
Q4 same-store sales: down 0.7 percent
Q4 total sales: down 4.4 percent to $2.5 billion
Q4 net income: down 8.6 percent to $212 million
2007 same-store sales: up 3.9 percent
2007 total sales: up 3.1 percent to $8.8 billion
2007 net income: up 5.5 percent to $715 million (including a $21 million gain from Facannoable sale)
Store growth plan: Nordstrom has 102 stores today, expecting 140 to 150 by 2015.
Best regions: Northwest, South, Midwest
Best categories: Designer across all categories, accessories, women’s shoes. Also performing well – premium denim and contemporary trends in the tbd department.
Credit cards: The company saw a softening in its credit card business with an increase in delinquencies and write offs. Those rates are still below the industry average. Executives expect a continued softening in the first half of the year, then improvement in the back half.
