Nordstrom Profit Falls 5% On Higher Costs

(RTTNews) - Fashion specialty retailer Nordstrom Inc. (JWN) said Thursday after the markets closed that its fourth quarter profit fell 5% from last year, as higher costs and expenses more than offset a 9% increase in revenue.

The company's quarterly earnings per share also came in below analysts' expectations, but its quarterly revenue just managed to beat analysts' forecast. At the same time, the company forecast fiscal year 2015 earnings below analysts' current consensus estimate.

Nordstrom shares are currently losing 0.44% in after hours trading after closing the day's regular trading session at $77.14, down 91 cents or 1.17%. The shares trade in a 52-week range of $58.26 to $80.54.

Nordstrom operates 292 stores, including 116 full-line stores in the United States and one in Canada; 167 Nordstrom Racks; two Jeffrey boutiques; and one clearance store.

For the fourth quarter ended January 31, 2015, the Seattle, Washington-based company reported net income of $255 million or $1.32 per share, compared to $268 million or $1.37 per share for the year-ago quarter.

On average, 28 analysts polled by Thomson Reuters expected the company to earn $1.35 per share for the fourth quarter.

The company completed its $357 million acquisition of Trunk Club in August. The acquisition reduced fourth quarter earnings before interest and taxes by $11 million.

Net sales for the fourth quarter rose 9% to $3.94 billion from $3.61 billion a year earlier, while total revenue for the quarter also increased 9% to $4.04 billion from $3.71 billion last year. Twenty-four analysts had a consensus revenue estimate of $4.01 billion for the fourth quarter.

Total company same-store sales for the fourth quarter increased 4.7%. Nordstrom same-store sales, which consist of the full-line and Direct businesses, grew 4.5%. Top performing merchandise categories included cosmetics, accessories and men's apparel.

Gross profit, as a percentage of net sales, decreased 53 basis points compared with the same period last year, mainly due to increased markdowns at Nordstrom Rack.

Looking forward to fiscal year 2015, the company forecasts net sales growth of 7% to 9% and earnings of $3.65 to $3.80 per share. Analysts currently expect the company to earn $4.11 per share on revenue growth of 8.10% for the fiscal year 2015.