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Nordstrom beats and raises guidance - but shares are down 6% as comp sales miss

Lisa Fu   

Nordstrom beats and raises guidance - but shares are down 6% as comp sales miss
Stock Market1 min read

Nordstrom Facebook

Nordstrom/Facebook


Nordstrom is down 6% in after-hours trading Thursday after first-quarter comparable sales missed Wall Street estimates.

The retailer said comparable same-store sales increased 0.7% at its full-priced stores, missing the 1% gain that analysts were expecting. Comp sales rose 0.4% at its off-price stores such as Nordstrom Rack and Last Chance clearance stores.

But the rest of the report looked good as Nordstrom showed earnings of $0.51 a share, beating the $0.43 estimate put together by analysts surveyed by Bloomberg. Revenue came in at $3.56 billion compared to the anticipated $3.45 billion.

The success was driven in part by the store's digital strategy. Digital sales made up 29% of all first-quarter sales, up from the 25% a year ago. Its rewards program also kicked in with Rewards Customers representing 53% of first-quarter sales.

Looking optimistically to fiscal year 2018, the department store increased its EBIT guidance to between $895 million and $940 million from $885 million to $940 million. It also raised its forecast for earnings-per-diluted-share to between $3.35 and $3.55 from $3.30 to $3.55.

Nordstrom is down more than 2% this year.

JWN

Markets Insider

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