Nordstrom swings to Q3 profit, leaning on online sales
Shares of Nordstrom Inc. (JWN) rose nearly 4% in the extended session Tuesday after the retailer reported a surprise GAAP profit for its third quarter. Nordstrom said it earned $53 million in the quarter, or 34 cents a share, which included an income-tax benefit of $19 million associated with the CARES Act. That compared with net earnings of $126 million, or 81 cents a share, during the same period in fiscal 2019. Sales dropped to $3.09 billion from $3.67 billion a year ago, the company said. Digital sales of $1.6 billion accounted for 54% of Nordstrom's business, it said. Analysts polled by FactSet had expected Nordstrom to report a loss of 13 cents a share on sales of $3.13 billion. "Our ability to significantly strengthen our financial flexibility early in the pandemic was key to delivering operating profitability of more than $100 million and cash flow of more than $150 million in the third quarter," Chief Executive Erik Nordstrom said in a statement. Shares had ended the regular trading day up nearly 5%.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
November 24, 2020 16:20 ET (21:20 GMT)
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