Nordstrom racks up big gain in digital sales — and the stock soars


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The truth about the retail apocalypse

Amazon is not the one on-line buying king primarily based in Seattle. It seems to be like you’ll be able to add fellow Seattle native Nordstrom to the listing of shops which have found out easy methods to promote issues over the web. Numerous issues.

Nordstrom reported outcomes for the second quarter after the closing bell Thursday that topped Wall Avenue’s forecasts, led by a 23% leap in digital gross sales. Nordstrom added that digital income now accounts for greater than a 3rd of its general gross sales.

Nordstrom additionally raised its earnings outlook for the rest of the 12 months. Shares of Nordstrom (JWN) soared greater than 10% in after hours buying and selling on the information.

Nordstrom is the newest retailer to report strong outcomes this week, becoming a member of Walmart (WMT) and Coach-owner Tapestry (TPR).

Walmart additionally reported wholesome digital development earlier Thursday and that was a giant purpose why its general outcomes have been so good. Walmart’s sturdy report helped gas a virtually 400-point pop within the Dow as effectively.

Nordstrom’s outcomes come a day after rival Macy’s (M) disillusioned buyers with gross sales development that was a bit sluggish. Actually, shares of Nordstrom plunged 5.5% Wednesday after Macy’s outcomes.

Macy's momentum may be slowing

The inventory solely staged a light rebound Thursday, rising lower than 1% — presumably because of the terrible outcomes from JCPenney (JCP).

However Nordstrom is clearly benefiting from the shift to on-line and cell buying. And the corporate mentioned gross sales for its brick and mortar shops are additionally booming.

Total income rose greater than 7% at Nordstrom, with same-store gross sales from its full-priced shops rising four.1% because of sturdy demand for youths’ clothes and wonder merchandise.

Similar-store gross sales additionally have been up four% on the firm’s Nordstrom Rack low cost areas. The corporate mentioned that it topped its expectations.

The wholesome outcomes additionally appear to validate Nordstrom’s choice to not go non-public.

The corporate held on-and-off talks with the Nordstrom household, which owns a giant chunk of the high-end retailer’s shares, a few buyout late final 12 months and earlier this 12 months. However discussions resulted in March with no deal.

CNNMoney (New York) First printed August 16, 2018: 5:25 PM ET

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