U.S. stocks: Nordstrom reports strong sales and earnings

Nordstrom Inc., symbol JWN on New York, mainly sells upscale clothing, accessories and footwear. The company owns and operates 212 outlets in the United States. It expects to open another nine stores this year. In March 2011, Nordstrom paid $180 million for HauteLook. The Los Angeles-based online retailer has more than 4 million members and annual sales of over $100 million. The acquisition will dilute Nordstrom’s earnings by about $0.20 per share in 2011. In its 2011 first quarter, which ended April 30, the U.S. stock’s earnings rose 25.0%, to $145 million, or $0.65 a share, from $116 million, or $0.52, a year earlier. The figures for the recent quarter include a $0.04 charge related to the acquisition of HauteLook. The U.S. stock’s sales rose 11.3% to $2.3 billion from $2.1 billion. Same-store sales rose 6.5%. Demand was strong for designer clothes, jewellery and men’s apparel. More of Nordstrom’s credit-card users are paying their bills on time. As a result, Nordstrom is setting aside fewer funds to cover bad loans. You can get our clear buy/sell/hold advice on Nordstrom and dozens of other companies that may be appropriate for the part of your portfolio you devote to U.S. stocks in Wall Street Stock Forecaster. What’s more, you can get the latest issue absolutely free. Click here to learn how.

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Scott Clayton

Scott is an associate editor at TSI Network. He is the lead reporter and analyst for Dividend Advisor, Power Growth Investor and Canadian Wealth Advisor and a member of the Investment Planning Committee. Scott began his investment and financial career working with Pat McKeough at The Investment Reporter in the 1980s. Subsequently, he worked at the Financial Post Corporation Service for 10 years. He joined TSI Network in 1998. He is a Bachelor of Economics graduate of York University, and he also has an M.B.A. from the Schulich School of Business.

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