Nordstrom upbeat as profit plunges 27%

Luxury retailer Nordstrom Inc. said Thursday its second-quarter profit fell 27 percent but met analyst expectations as the company tightly managed its inventory and lowered its prices in an effort to offset slumping sales.

Nordstrom executives said results came in better than planned and raised the company’s full-year outlook.

Second-quarter profit fell to $105 million, or 48 cents per share, from $143 million, or 65 cents per share in the same period last year. That matched analysts expectations, according to a poll by Thomson Reuters.

Revenue fell 6 percent to $2.14 billion from $2.29 billion last year. Analysts also predicted revenue of $2.14 billion.

Dresses, fashion jewelry and kids shoes and apparel were the strongest sellers. Skinny jeans and boots were popular items. The South and the mid-Atlantic regions were the best performers.

The company said results improved in July, mainly due to positive reaction to its annual anniversary sale, but outside of that customers are still cautious.

“Though July represented some improvement, our plans remain unchanged for the balance of the year,” said Blake Nordstrom, the retailer’s president. “We really don’t see outside of this unique sale event a change with the customer.”

The Associated Press