Same-store sales at Nordstrom Inc. (JWN) grew by 6.7% for the four-week period ended August 27, 2011. Total retail sales in August 2011 climbed 12.4% to $691 million from $615 million for the four-week period ended August 28, 2010.
Moreover, Nordstrom's year-to-date comparable sales grew by 6.9% year over year. Total retail sales for the period increased 12.2% to $5,636 million from $5,022 million reported in the prior-year period.
As of September 1, 2011, Nordstrom had 115 Nordstrom full-line stores, 97 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure&bond store and 1 clearance store. Same-store sales at Nordstrom stores (including Nordstrom full-line stores and Direct) increased 7.7% in August, while Nordstrom Rack reported a rise of 3.8% for the four-week period ended August 27, 2011. Year to date, the company reported an increase of 7.9% in same-store sales at Nordstrom stores and a rise of 3.1% at Nordstrom Rack.
Peer Performance
Gap Inc. (GPS), a Nordstrom competitor, registered a decline of 6.0% in same-store sales in August 2011, while its net sales came in at $1.10 billion compared with $1.13 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 #2 Rank, which translates into a short-term 'Buy' rating. Our long-term recommendation on the stock remains 'Neutral'.
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