Nordstrom, Inc. (NYSE:JWN) shares rose sharply early Thursday, after the company reported stronger-than-expected earnings for its second quarter on Wednesday.
Total company net sales decreased 5.1% in the second quarter. Second quarter net earnings were $141 million compared with $162 million during the same period in fiscal 2018.
Earnings before interest and taxes were $216 million, or 5.7% of net sales, compared with $246 million, or 6.2% of net sales, during the same period in fiscal 2018. The decrease was driven primarily by lower sales volume.
Selling, general and administrative expenses, as a percentage of net sales, of 31.2% increased 26 basis points compared with the same period in fiscal 2018.
This was primarily due to fixed expense de-leverage on lower sales volume, partially offset by expense savings related to ongoing efficiency initiatives as well as adjustments to performance-related expenses.
Moreover, in the last six months, the Company repurchased 4.1 million shares of its common stock for $186 million. A total capacity of $707 million remains available under its existing share repurchase authorization.
Co-President Erik Nordstrom said, "We delivered strong bottom-line results, demonstrating our inventory and expense discipline. We exited the quarter in a favorable inventory position and made important strides in productivity
"We remain encouraged by our key initiatives, including our local market strategy, and are making good progress on key areas of focus that we believe will collectively drive increased value creation for our shareholders."
Shares hiked $3.26, or 12.3%, to $29.77
