November 14, 2014
New stores, 3.9% same store sales growth and increased loyalty propelled Nordstrom to record third quarter sales.
The company’s total sales increased 8.9% to $3 billion thanks to the addition of new stores and a 3.9% same store sales increase that was driven by online growth. Profits increased 3.6% to $142 million compared to $137 million while earnings per share increased 5.8% to 73 cents from 69 cents.
The company said sales at full line stores increased 0.5%, reflecting the addition of three new stores during the quarter and flat same store sales. Nordstrom Rack sales increased 15% thanks to the opening of 16 stores and a 1.7% comp increase. The greatest growth came from the company’s direct business which increased 22% as assortments were expanded.
The Nordstrom Rewards loyalty program continues to contribute to the company’s overall results as well. Members shopped more frequently and spent more on average than non-members. The company opened approximately 275,000 new accounts in the third quarter, an increase of 18% compared with the prior year. With 4.2 million active members, sales from members increased 13% in the third quarter and represented 38% of sales compared to 37% the prior year.
The company ended the quarter with 118 full line stores and 167 Rack stores.
Source: Retailing Today.
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