Same-store sales at Nordstrom Inc. (JWN) grew by 7.9% for the five-week period ended July 2, 2011. Total retail sales in June 2011 climbed 12.8% to $927 million from $822 million for the five-week period ended July 2, 2011.
Moreover, Nordstrom's year-to-date same store sales increased 7.0%. During the said period, the company’s total retail sales surged 12.4% to $3.95 billion from $3.52 billion in the prior-year period.
As of July 2, 2011, Nordstrom had 116 Nordstrom full-line stores, 95 Nordstrom Racks, 2 Jeffrey boutiques and 1 clearance store. Same-store sales at Nordstrom stores (includes Nordstrom full-line stores and Direct) increased 9.0% in June, while Nordstrom Rack reported a rise of 4.6% for the five-week period ended July 2, 2011. However, same store sales at Nordstrom stores climbed 8.1% year-to-date coupled with a 2.8% increase in Nordstrom Rack.
Peer Performance
Gap Inc. (GPS), a Nordstrom competitor, registered an increase of 1.0% in same-store sales in June 2011, while its net sales came in at $1.38 billion compared with $1.31 billion in the year-ago period.
Conclusion
Nordstrom remains focused on expanding the store network to drive top-line growth. However, a sluggish discretionary spending environment, intense competition and exposure to seasonal fluctuations keep us on the sidelines.
Based in Seattle, Washington, Nordstrom Inc. is a leading fashion specialty retailer in the U.S., offering high quality apparel, shoes, cosmetics and accessories for men, women and kids. The company offers both branded and private label merchandise, as well as a private label card, two Nordstrom VISA credit cards and debit cards for Nordstrom purchases.
Nordstrom's shares maintain a Zacks #3 Rank, which translates into a short-term Hold rating. Our long-term recommendation on the stock remains Neutral.
GAP INC (GPS): Free Stock Analysis Report
Be the first to comment