Same-store sales at Nordstrom Inc. (JWN) grew by 7.4% for the four-week period ended May 28, 2011. Total retail sales in May 2011 climbed 13.0% to $796.00 million from $705.00 million for the four-week period ended May 29, 2010.
Moreover, Nordstrom's year-to-date same store sales increased 6.7% compared with the prior-year period. During this period of 2011, the company’s total retail sales surged 12.2% to $3.02 billion from $2.69 billion in the prior-year period.
As of May 28, 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 7.9% in May, while Nordstrom Rack reported a rise of 5.9% for the four-week period ended May 28, 2011. However, same store sales at Nordstrom stores climbed 7.8% year-to-date coupled with a 2.3% increase in Nordstrom Rack.
Store Update
During the period under review, the company has opened one Nordstrom Rack store each 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.
Peer's Performance
Gap Inc. (GPS), a competitor of Nordstrom, registered a decline of 4.0% in same-store sales in May 2011, while its net sales came in at $1.06 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 #3 Rank, which translates into a short-term 'Hold' rating. Our long-term recommendation on the stock remains 'Neutral'.
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