Back to top

Analyst Blog

Zacks Equity Research

Nordstrom's October Comps Gain

JWN GPS

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

October sales results for leading fashion retailer, Nordstrom Inc. (JWN - Analyst Report), remained robust with a 9.8% rise in comparable store sales (comps) compared with the year-ago period. Nordstrom’s two business segments – Nordstrom full-line and Nordstrom Rack – reported comps increase of 10.2% and 10.5%, respectively, compared with the year-ago period.

For the four weeks ended October 27, 2012, total retail sales climbed 11.5% to $835 million from $749 million reported for the five-week period ended October 29, 2011.

Comps for the third quarter of fiscal 2012 gained 10.7% on top of the year-ago quarter, primarily benefiting from the shift in timing of the company’s Anniversary Sale event. Quarterly comps at the company’s business segments also came in strong, comprising an 11.2% increase in Nordstrom full-line store comps and an 8.1% augmentation in Nordstrom Rack store comps. Net sales for the quarter rose 13.8% to $2,713 million.

Year-to-date through October 27, 2012, Nordstrom’s total retail sales elevated 11.4% to $8,166 million driven by a 7.7% increase in comparable store sales. During the period, the company’s comparable store sales at Nordstrom full-line and Nordstrom Rack segments augmented 8.1% and 7.5%, respectively.

Peer Performance

One of Nordstrom’s competitors, Gap Inc. (GPS - Analyst Report), registered a 4% rise in comparable store sales for the month of October, while net sales came in at $1.22 billion, up 7.0% compared with the prior-year period.

Geared up for More Stores

During October, Nordstrom successfully executed its plan of opening three new Nordstrom Rack stores in different locations. These stores were opened at Town & Country in Phoenix, Arizona; Alamo Quarry Market in San Antonio, Texas; and Huntington Shopping Center in Huntington, New York. Further, the company relocated its Nordstrom Rack store in White Plains, New York, to another floor at the same location.

The company’s plans for November include opening two Nordstrom Rack stores at Warwick Mall in Warwick, Rhode Island; and Northgate Mall in Seattle, Washington.

Over the longer term, Nordstrom targets to open four Nordstrom Rack stores beginning 2013, including stores in Manhasset Center in Long Island, New York; Promenade in Crocker Park in Cleveland, Ohio; Collection Anex in Chicago, Illinois.; and Baldwin Commons in Auburn Hills, Michigan.

Our Recommendation

Based in Seattle, Washington, Nordstrom Inc. offers 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 maintains a Zacks #3 Rank, which translates into a short-term Hold rating. Our long-term recommendation on the stock remains Neutral.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
KNIGHTSBRIDG VLCCF 13.52 +7.81%
CLAYTON WILL CWEI 135.74 +3.98%
MOTORCAR PAR MPAA 29.00 +3.35%
CANADIAN SOL CSIQ 29.86 +2.23%
SHENANDOAH T SHEN 29.81 +1.98%