Nordstrom reports encouraging sales growth

SEATTLE (AP) — Nordstrom Inc. said its second-quarter profit declined 6 percent, but it reported encouraging sales growth.

The Seattle-based department store chain said Thursday that it earned $110 million, or 65 cents per share, during the quarter. That’s down from $117 million, or 67 cents per share, a year ago. The results exceeded the 62 cents per share average expected by 11 analysts surveyed by Zacks Investment Research.

Sales at established stores across the chain increased 1.7 percent. Analysts surveyed by FactSet had expected Nordstrom, which closed its Vancouver Mall store in 2015, to report a decline of 0.5 percent. The figure of sales at established stores is a key retail indicator because it strips out the effects of newly opened and recently closed locations.

The company’s discount Nordstrom Rack unit reported a 3.1 percent improvement in established-store sales. The flagship Nordstrom unit, which includes online clothing concierge Trunk Club, reported a 1.4 percent increase in sales at established stores. Those results contrasted with those of other department store chains that reported results earlier in the day.

Online sales grew 20 percent during the quarter as the retailer held its annual anniversary sale.

The chain posted revenue of $3.79 billion in the quarter, also exceeding Street forecasts. Four analysts surveyed by Zacks expected $3.73 billion.

Nordstrom tweaked its outlook for full-year earnings. It now predicts 2017 profit between $2.85 and $3 per share. Previously, it had predicted earnings between $2.75 and $3 per share.

Nordstrom shares have dropped almost 7 percent since the beginning of the year, while the Standard & Poor’s 500 index has increased 9 percent. In the final minutes of trading on Thursday, shares hit $44.73, a climb of 1 percent in the past 12 months. In after-hours trading, Nordstrom shares gained more than 3 percent, or $1.53, to sell for $46.40.