The department store, however, lowered same-store sales guidance for the fourth quarter to flat from earlier estimates of a 2% to 3% gain, citing lower sales trends.
In September, the National Retail Federation warned that sales growth in the holiday shopping season would hit a five-year low.
Nordstrom said net income jumped 22% to $165.7 million from $135.67 million a year earlier. Earnings surged 30% to 68 cents per share from 52 cents per share last year. Analysts polled by Thomson Financial predicted profits of 52 cents per share.
Nordstrom will pay a quarterly dividend of 14 cents per share.
Included in the results is a gain of $20.9 million or $0.09 per diluted share from the sale of the Faconnable business in the quarter. Excluding these items, earnings per share were up 13% at 59 cents.
The company said the third quarter started later this year and included more high-volume fall shopping days, versus a year ago. This timing shift positively impacted sales results for the third quarter of 2007.
In the quarter, gross profit, as a percent of sales, decreased 38 basis points compared to last year''s third quarter, dragged by higher markdowns on merchandise.
Selling, general and administrative expenses, as a percent to sales, decreased 70 basis points versus the same period 2006 primarily due to reduced performance based incentives.
Nordstrom repurchased approximately 16.4 million shares of its common stock during the third quarter for $750 million.
The board approved an additional $1 billion for stock buy-backs in the quarter, bringing the total for the nine months to $2.5 billion.
After opening three new stores in the third quarter, Nordstrom is planning to spend $3 billion in capital expenditure over the next five years of which eight percent will be used for new store openings.
In the nine months to November 3rd, revenues climbed 6.8% to $6.31 billion from $5.93 billion same period last year.
Earnings rose 12.8% to $502.95 million or $1.98 per share from $445.66 million or $1.67 per share in the year ago quarter.
Nordstrom now expects profits in the fourth quarter between 88 cents and 92 cents per share, down from the previously forecast range of 99 cents to $1.02 per share.
The monthly same-store sales rates in November are expected to be above the anticipated quarterly rate. In December, the monthly same-store sales rate is expected to be below the anticipated quarterly rate.
For the full year, Nordstrom is predicting earnings in the range of $2.78 to $2.82 per share, down from $2.80 to $2.86 per share.
Nordstrom shares soared 12.1% in Tuesday to $34.21 after the department store released its earnings. At the mid-day trading Nordstrom increased $1.02 to $35.23. Over the last 52 weeks, Nordstrom has traded in the range $30.36 to $59.70.
Analysts estimate fourth quarter earnings of 94 cents per share and $2.76 per share for the fiscal 2007.
Wal-Mart Stores, Inc reported last week third quarter net sales increased 8.8% to $90.9 billion from $83.5 billion from a year ago. Net income from continuing operations rose 7.9% to $2.86 billion from $1.65 billion a year earlier.
Nordstrom, Inc operates 157 stores located in 28 states in the U.S. The company also runs 101 full-line stores, 51 Nordstrom Racks, two Jeffrey boutiques, one free-standing shoe store, and two clearance stores.
Source: 123jump
Nordstrom, Inc operates 157 stores located in 28 states in the U.S. The company also runs 101 full-line stores, 51 Nordstrom Racks, two Jeffrey boutiques, one free-standing shoe store, and two clearance stores.
Source: 123jump
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