This upscale retailer is still worth holding

Article Excerpt

NORDSTROM, INC. $41 (New York symbol JWN; WSSF Rating: Average) operates 155 stores in 27 states, including 98 full size department stores. Nordstrom stores specialize in upscale fashions and home décor items. In its third fiscal quarter ended October 29, 2005, Nordstrom earned $0.39 a share (total $107.5 million), up 44.4% from $0.27 a share ($77.8 million) a year earlier. Sales rose 11.3%, to $1.67 billion from $1.5 billion, while same-store sales grew 5.9%. Most of Nordstrom’s earnings gain is due to its new computerized inventory control system. It helped cut the company’s general and administrative costs in the latest quarter to 28.9% of sales, down from 30.2% a year earlier. The new system helps make sure that stores do not run out of popular merchandise. This cuts down on the need for costly clearance sales. Nordstrom is also selling more goods through its Internet site. Direct sales in the third quarter rose 7.3%, to $95.0 million from $88.5 million, and now supply…

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