Same-store sales at Nordstrom Inc. (JWN) grew by 7.6% for the four-week period ended April 30, 2011. Total retail sales in April 2011 climbed 14.2% to $726.0 million from $636.0 million for the four-week period ended May 01, 2010.
Moreover, Nordstrom's first-quarter 2011 same store sales inched up 6.5% compared with the prior-year quarter. During first-quarter 2011, the company's total retail sales grew 12.0% to $2.23 billion from $1.99 billion in the prior-year quarter.
Stores Update
As of April 30, 2011, Nordstrom had 116 Nordstrom full-line stores, 92 Nordstrom Racks, 2 Jeffrey boutiques and 1 clearance store. Same-store sales at Nordstrom stores (includes Nordstrom full-line stores and Direct) increased 9.3% in April while Nordstrom Rack reported an increase of 2.7% for the four-week period ended April 30, 2011. However, during the first quarter of 2011, same store sales at Nordstrom stores increased 7.8% while Nordstrom Rack reported a rise of 1.2%.
During the reported month, a Nordstrom full-line store was opened by the company at Christiana Mall in Newark, Del. Besides, Nordstrom has opened a Nordstrom Rack store at Belmar in Lakewood, Colorado. Moreover, the company has relocated its Nordstrom Rack store at Flatiron Marketplace in Broomfield, Colorado to the Twenty Ninth Street shopping center in Boulder, Colorado.
The company has planned to open three Nordstrom Rack stores at Towne Place at Garden State Plaza in Cherry Hill, New Jersey; Friendship Center in Washington, D.C.; and Annapolis Harbour Center in Annapolis, Maryland.
At the Peer
Gap Inc. (GPS), a competitor of Nordstrom, posted an increase of 8.0% in same-store sales in April 2011 while net sales came in at $1.15 billion compared with $1.05 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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