NORDSTROM INC. $63 - New York symbol JWN

NORDSTROM INC. $63 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 197.0 million; Market cap: $12.4 billion; Price-to-sales ratio: 1.0; Dividend yield: 1.9%; TSINetwork Rating: Average; www.nordstrom.com) mainly sells upscale clothing, accessories and footwear. The company owns and operates 261 stores in 35 states.

In the third quarter of its 2014 fiscal year, which ended November 2, 2013, Nordstrom’s sales rose 2.8%, to $2.9 billion from $2.8 billion a year earlier.

Same-store sales rose just 0.1%. That’s mainly because the company’s popular anniversary sale occurred in the second quarter of fiscal 2014, but straddled the second and third quarters a year earlier. If you adjust for this, same-store sales rose 2.4%.

Earnings fell 6.2%, to $137 million from $146 million. Per-share earnings declined 2.8%, to $0.69 from $0.71, on fewer shares outstanding. However, adjusting for the anniversary sale, earnings improved 5.6%, to $0.75 a share.

In the next three months, Nordstrom plans to open four new Nordstrom Rack stores, and relocate a fifth. These outlets sell clearance merchandise from the company’s regular stores, which helps it attract cost-conscious shoppers.

For all of fiscal 2014, Nordstrom expects to earn $3.65 to $3.70 a share. The stock trades at a still-reasonable 17.1 times the midpoint of that range. The $1.20 dividend yields 1.9%.

Nordstrom is a buy.

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