Nordstrom, Inc. (NYSE: JWN) rose Friday after the company reported better-than-expected earnings for its second quarter and raised its 2018 guidance.
The Seattle-based company says total company net sales increased 7.1% for the second quarter ended August 4, 2018 compared with the quarter ended July 29, 2017. This reflected a favorable shift of approximately 100 basis points primarily due to the impact of the new revenue recognition standard as it relates to the timing of the Anniversary Sale.
Second-quarter net earnings were $162 million compared with $110 million during the same period in fiscal 2017. The increase was driven primarily by higher sales volume, a lower effective tax rate and the impact of the new revenue recognition standard.
Increased digital sales by 23% in the second quarter, compared with 20% for the same period last year. Digital sales represented 34% of second quarter sales, up from 29% a year ago. During the first day of its Anniversary Sale, Nordstrom achieved record digital demand, surpassing its previous peak by 80%. In Off-Price, comparable sales increased 4%, exceeding expectations.
The Company raised its annual outlook expectations for sales and earnings per diluted share to incorporate its first half results. Net sales were expected to fall between $15.2 and $15.4 billion. They are now expected to reach between $15.4 and $15.5 billion.
Earnings per diluted share were projected between $3.35 and $3.55. They are now expected between $3.50 and $3.65.
Shares rocketed $4.86, or 9.3%, to $57.14.
