Highlights of Nordstrom's (JWN) Second Quarter results and Fiscal 2011 Guidance

Nordstrom, Inc. (NYSE: JWN) reported its second quarter results with net earnings of $175 million, or $0.80 per diluted share.

Second quarter same-store sales increased 7.3 percent compared with the same period in fiscal 2010. Net sales in the second quarter were $2.72 billion, an increase of 12.4 percent year-over-year.

During the quarter:

• Credit card revenue fell 4 percent year-over-year to $94 million.

• Cost of sales and related buying and occupancy costs rose 10 percent year-over-year to $1.723 billion.

• Gross profit rose 135 basis points year-over-year to $1.015 billion.

• Interest expenses totaled $27 million.

• Nordstrom also opened three new rack stores during the quarter; one in Cherry Hill, New Jersey in the Towne Place at Garden State Park with 36 thousand square ft. on May 5, the second one was in Washington, D.C. at the Friendship Center with 41 thousand square ft. on May 19, and the third one in Annapolis, Maryland in the Annapolis Harbour Center with 35 thousand square ft. on May 19.

The company ended the quarter with:

• Cash and cash equivalents totaled $1.09 billion while accounts receivable totaled $2.204 billion.

• Merchandise inventories totaled $228 million.

Nordstrom’s fiscal 2011 guidance calls for:

• Same-store-sales increase of 4-6 percent.

• Credit card revenues are expected to fall by $0-$10 million.

• Gross Profits are forecasted to grow by 30-50 basis points.

• Retail selling, general, and administrative expenses are expected to increase by $310-$350 million.

• Earnings per share are estimated to fall between $2.95 and $3.10.

• The company is anticipating on finishing the fiscal year with 219.9 million shares outstanding.

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