Retail

Nordstrom Follows Other Retailers to Weaker Results

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Nordstrom Inc. (NYSE: JWN) reported second-quarter 2013 results after markets closed on Thursday. The department store chain posted quarterly diluted earnings per share (EPS) of $0.93 on revenues of $3.1 billion. In the same period a year ago, Nordstrom reported EPS of $0.75 on revenues of $2.9 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.88 and $3.29 billion in revenue.

For the quarter same-store sales rose 4.4% compared with the second quarter of 2012. The company estimates that about 2.5% (or $0.06 per share) of the same-store sales gain is due to its annual anniversary sale falling entirely within the quarter rather than straddling the second and third quarters as it did last year.

In its outlook statement, Nordstrom cut its full-year EPS guidance from a prior range of $3.65 to $3.80 to a new range of $3.60 to $3.70, reflecting a drop in forecast the same-store sales increase from a prior range of 3% to 5% to a new range of 2% to 3%. The outlook for total sales has dropped from a range of 4% to 6% to a new range of 3% to 4%. An expected decline in gross profit also got larger.

If this sounds a lot like the earnings reports from Macy’s Inc. (NYSE: M), Wal-Mart Stores Inc. (NYSE: WMT) and Kohl’s Corp. (NYSE: KSS), you’re not imagining things. The company’s full-line stores saw a reduction of 0.7% in same-store sales, while the company’s outlet stores saw same-store sales growth of 2.4% and direct sales (online) rose 34%.

Consumers are more cautious about spending than they have been. And it appears to be the case up and down the income ladder, from higher end stores like Macy’s and Nordstrom, to mid-level stores like Kohl’s, down to economy-minded Walmart.

Shares are down about 3% in after-hours trading, at $57.52 in a 52-week range of $50.94 to $63.34. Thomson Reuters had a consensus analyst price target of around $62.60 before today’s results were announced.

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