NORDSTROM FOURTH QUARTER AND FISCAL 2016 EARNINGS EXCEEDED EXPECTATIONS

Seattle-based retailer Nordstrom, Inc. has reported fourth quarter earnings that exceeded expectations, reflecting continuous improvements to its operating model.

Fourth quarter net earnings were $201 million and earnings before interest and taxes (EBIT) was $424 million, or 10.0 percent of net sales, compared with net earnings of $180 million and EBIT of $324 million, or 7.8 percent of net sales for the same period in fiscal 2015.

Earnings per diluted share for the fourth quarter ended January 28, 2017 was $1.15, and when excluding the fourth quarter tax effect of the Trunk Club goodwill impairment, adjusted earnings per diluted share was $1.37. Fourth quarter results also included a non-operational gain of $0.10, which was not reflected in the company’s outlook. Net sales increased 2.4 percent and comparable sales decreased 0.9 percent.

Full year net earnings were $354 million and EBIT was $0.8 billion, or 5.6 percent of net sales, compared with net earnings of $600 million and EBIT of $1.1 billion, or 7.8 percent of net sales, for the same period in fiscal 2015.

For fiscal 2016, earnings per diluted share of $2.02 exceeded the company’s expectations driven by continued operational efficiencies in inventory and expense execution. Excluding the Trunk Club impairment charge, adjusted earnings per diluted share was $3.14, above the company’s outlook of $2.85 to $2.95. Net sales increased 2.9 percent and comparable sales decreased 0.4 percent.

Nordstrom has also announced plans to open 19 stores in fiscal 2017, consisting of one new full-line store, 15 new Nordstrom Rack stores, two full-line store relocations and one Nordstrom Rack store relocation.