Nordstrom, Inc. (NYSE:JWN) today reported fourth quarter earnings per diluted share for the fourth quarter ended February 3, 2018 of $0.89, which included impacts associated with corporate tax reform consisting of a $0.25 charge primarily related to its income tax provision and a one-time pretax investment in its employees of $16 million or $0.06. Net sales for the fourth quarter increased 8.4 percent, inclusive of approximately $220 million related to the 53rd week, and comparable sales increased 2.6 percent.
For fiscal 2017, earnings per diluted share was $2.59, including corporate tax reform-related reductions of $0.31. Earnings were in-line with the Company’s prior outlook of $2.90 to $2.95, which did not incorporate the impacts related to corporate tax reform. Net sales increased 4.4 percent and comparable sales increased 0.8 percent, slightly exceeding the Company’s prior outlook for sales growth of approximately 4.2 percent and comparable sales increase of approximately 0.5 percent.
In fiscal 2017, the Company reached record sales of $15.1 billion, achieving the following milestones in executing its growth plans:
• Nordstrom experienced continued positive customer trends, reflecting customer growth of 4 percent to 33 million.
• Generational investments, which include Nordstromrack.com/HauteLook, Canada and Trunk Club, contributed $1.5 billion in sales.
• In the Nordstrom full-price business, strategic brands, including product with limited distribution and Nordstrom proprietary labels, continued to deliver outsized sales growth.
• The Nordstrom Rack off-price business gained 6 million new customers with approximately one-third of off-price customers expected to cross-shop the full-price business over time.
• Nordstrom Rewards customers increased by 35 percent to 10.5 million. Sales from Nordstrom Rewards customers represented 51 percent of sales, an increase from 44 percent in 2016.
FOURTH QUARTER SUMMARY
• Fourth quarter net earnings were $151 million and earnings before interest and taxes (EBIT) was $350 million, or 7.6 percent of net sales, compared with net earnings of $201 million and EBIT of $424 million, or 10.0 percent of net sales for the same period in fiscal 2016. ? Net earnings included a $42 million charge related to corporate tax reform, including a one-time, non-cash charge of $51 million related to the revaluation of its deferred tax assets, partially offset by cash tax savings from a lower federal tax rate.
– Retail EBIT decreased $93 million compared with the same quarter last year, reflecting investments in capabilities to support the Company’s growth plans.
– Credit EBIT increased $19 million, primarily due to higher credit card revenues.
• Total Company net sales of $4.6 billion for the fourth quarter increased 8.4 percent, inclusive of approximately $220 million, or 520 basis points, from the 53rd week, compared with net sales of $4.2 billion during the same period in fiscal 2016. Total Company comparable sales for the fourth quarter increased 2.6 percent. ? In the Nordstrom brand, which includes U.S. and Canada full-line stores, Nordstrom.com and Trunk Club, net sales increased 6.4 percent and comparable sales increased 2.4 percent. Across U.S. full-line stores and Nordstrom.com, the top-performing merchandise categories were Kids’ and Men’s Apparel.
– In the Nordstrom Rack brand, net sales increased 15.0 percent and comparable sales increased 3.7 percent.
• Retail gross profit, as a percentage of net sales, of 35.6 percent decreased 42 basis points compared with the same period in fiscal 2016, primarily due to higher occupancy expenses related to new store growth for Nordstrom Rack, Canada and the New York City Men’s flagship. Merchandise margin performance was in-line with the Company’s expectations, reflecting continued strength in regular price selling trends. Ending inventory increased 6.9 percent over last year, generally in-line with the Company’s expectations.
• Selling, general and administrative expenses, as a percentage of net sales, of 30.1 percent increased 243 basis points compared with the same period in fiscal 2016, primarily due to higher supply chain, marketing and technology expenses associated with the Company’s growth initiatives. In addition, the increase reflected a one-time investment in its employees associated with corporate tax reform, performance-related adjustments based on company performance and a legal settlement gain of $22 million in 2016.
more detail at: http://press.nordstrom.com/phoenix.zhtml?c=211996&p=irol-newsArticle&ID=2335749