During a day when a number of stocks in retail were struggling, Nordstrom posted sales and earnings for its first quarter that beat expectations on Wall Street.
However, shares at Nordstrom fell after hours when investors took time to digest the overall health of the industry, amidst a number of results of same store sales that were weaker than had been expected, implying that less traffic was reaching the malls.
Nordstrom posted earnings per share of 43 cents with revenue reaching $3.35 billion. Wall Street was expecting earnings per share of 27 cents with revenue reaching $3.34 billion.
Total sales at same stores, a metric watched closely by analysts for retail, fell by 0.8% while analysts were expecting a drop of just 0.1%.
At the end of regular trading Nordstrom was down 7%, but the stock dropped another 4% during trading after hours.
The retailer announced that its net income had increased from $46 million during the same period one year ago to over $63 million, boosted in part by stronger than anticipated demand at off-price locations, which are called Nordstrom Rack.
At its brand Nordstrom Rack, which consists of Nordstromrack.com and the brick and mortar Rack stores, net sales were up over 8.7% during the quarter, with comparable sales increasing by 2.3%.
Nordstrom announced that its sales online were 24% of all net sales during the quarter, and driven by a growth of 11% by Nordstrom.com, and a growth of 19% for Nordstromrack.com.
That trend has hinted at how the chain of department stores had placed more resources on attracting shoppers to its platform online recently.
Retailers for the most part disappointed Wall Street Thursday as Kohl’s, Dillard’s and Macy’s all posted results for the quarter prior to the closing bell that sent stocks for each down.
While the majority of peers have shuttered a number of brick and mortar stores, Nordstrom’s portfolio of real easts is far leaner, leaving it with additional flexibility to make adjustments to its store footprint at a more gradual pace amidst a retail landscape that continues to evolve.
Investors do not expect any large scale strategy of store closures by Nordstrom in the near future.
For its fiscal 2017, the retailer reconfirmed on Thursday it is expecting its net sales will increase between 3% and 4% and earnings per diluted share to be between $2.75 and $3.00.
Nordstrom also is expecting its comparable sales to remain flat for the complete year.