Nordstrom, Inc. (NYSE:JWN) reported better-than-expected earnings for its third quarter. The company also raised the lower end of FY19 EPS guidance.
The Seattle-based Nordstrom reported earnings per diluted share of $0.81. Net earnings were $126 million compared with $67 million during the same period in fiscal 2018. Prior year results included an after-tax estimated non-recurring credit-related charge of $49 million. Excluding this charge, earnings grew 9% over last year.
Total net sales decreased 2.2% in the third quarter, improving by more than 200 basis points from the first half of 2019.
Selling, general and administrative expenses, as a percentage of net sales, of 31.8% decreased 132 basis points compared with the same period in fiscal 2018. Excluding the credit-related charge of $72 million in 2018, expenses de-leveraged by approximately 60 basis points due to New York City flagship pre-opening costs.
The Company’s enhanced loyalty program continues to grow. The Nordy Club had more than 12 million active customers, which represented an increase of 13% over last year and nearly 65% of sales for the third quarter.
According to CEO Erik Nordstrom, "Our market strategy is transforming our business model in how we’re serving customers. We have a unique mix of assets – Full-Price, Off-Price, stores, and online – and we are further linking our businesses to serve customers in new and differentiated ways.
"We achieved an important milestone with the opening of our New York City flagship store, significantly increasing our presence in the world’s top retail market. It’s a culmination of efforts across many teams, and we are grateful for their dedication and passion in bringing this store to life."
Shares in Nordstrom came storming out of the gate Friday, gaining $2.99, or 8.7%, to $37.29
