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Nordstrom Posts Strong Same-Store Sales Growth in 1Q15

Nordstrom Beats Sales Estimates but Delivers Mixed Results in 1Q15

(Continued from Prior Part)

1Q15 same-store sales

Nordstrom (JWN) posted same-store sales growth of 4.4% in the first quarter of fiscal 2015, ended May 2, compared to the first quarter of the previous year. The company’s 1Q15 same-store sales growth was ahead of analysts’ estimates of 3.3%. Nordstrom’s same-stores sales growth in 1Q15 also outpaced department stores like Macy’s (M) and Kohl’s Corporation (KSS). Macy’s reported a 0.7% decline in its same-store sales in 1Q15, while Kohl’s same-store sales increased by 1.4%. J.C. Penney’s (JCP) 1Q15 same-store sales grew by 3.4%.

Nordstrom, Macy’s, and Kohl’s together account for ~0.2% of the of the iShares MSCI ACWI ETF’s (ACWI) portfolio holdings.

Nordstrom’s same-store sales growth in 1Q15 was driven by strong performance in women’s and men’s apparel. Same-store sales for the full-line and Nordstrom.com businesses together increased by 4.2% in 1Q15. Same-store sales for full-line stores increased 0.5% in 1Q15 compared to 1Q14.

Weakness in Rack same-store sales

Nordstrom Rack stores’ same-store sales declined by 0.2% from the comparable quarter of the previous year. This decline contrasts with recent quarters, when the company’s off-price Rack stores posted higher same-store sales growth than the full-line stores. Nordstrom believes that the decline in Rack same-store sales is temporary. The company continues to maintain a full-year expectation of low single-digit same-store sales growth at its Rack stores.

New stores

Nordstrom ended 1Q15 with 303 stores compared to 270 stores in the comparable quarter of the previous year. The additional stores compared to the first quarter of the previous year include two full-line stores in Canada, a full-line store in Puerto Rico, and 27 Rack Stores. The company will open a full-line store in Vancouver on September 19.

The iShares Russell 1000 Growth ETF (IWF) invests ~0.1% of its portfolio holdings in Nordstrom.

Continue to Prior Part

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