Nov 26 (Reuters) - Nordstrom ( JWN ) beat third-quarter revenue and profit estimates on
Tuesday, helped by rising demand for popular brands including On Running, Hoka and Vuori at its
department stores.
Adding fresh and desired brands to its shelves has helped Nordstrom ( JWN ) appeal to more
customers. The company's efforts to focus on digital growth and expand Rack stores, its
off-price brand, have further boosted sales ahead of a potentially mixed holiday season.
The Seattle, Washington-based company raised the lower-end of its annual comparable sales
forecast, now expects a growth of 1% to 2% from its previous range of flat to a 2% rise.
Apparel chains such as Abercrombie & Fitch ( ANF ) and Gap also benefited from
customers purchasing their new and trendier product offerings.
Nordstrom ( JWN ) bucked the trend on tepid spending at department stores by luring in shoppers for
categories including women's apparel, shoes and men's apparel, while peers such as Macy's
and Kohl's struggled with patchy demand.
Nordstrom's ( JWN ) total revenue rose 4.3% to $3.46 billion in the quarter ended Nov. 2 from a year
earlier. Analysts, on average, estimated a 0.8% rise to $3.35 billion, according to data
compiled by LSEG.
Benefits from strong full-price sales and improvements in variable costs across the business
helped the upmarket department store chain expand its profit margins.
Its quarterly gross profit as a percentage of sales rose 60 basis points to 35.6%.
The company reported adjusted profit of 33 cents per share for the third quarter, compared
with analysts' expectations of 21 cents apiece.
During the July to September period, foot traffic at Nordstrom ( JWN ) and Nordstrom Rack stores
grew 1.4% and 5% year over year, respectively, according to Placer.ai data.
In September, Nordstrom's ( JWN ) founding family offered to take the department store chain private
for $23 per share, teaming up with a Mexico-based retailer in its latest bid.