Nordstrom, Inc. reported net sales reached $3.6 billion in the fiscal second quarter ended August 1, up 9.2 percent compared with a year earlier, thanks to acquisitions, the addition of 33 new retail locations and a 4.9 percent increase in comparable sales, which include Nordstrom.com results.
The Seattle-based retailer said top-performing merchandise categories included cosmetics and Women's apparel, led by coats, dresses and younger customer-focused departments.
Full-line net sales of $2.1 billion increased 1.1 percent compared with the same period last year. Comparable sales increased 0.8 percent, reflecting ongoing improvement in sales trends. The Southwest and Southeast were the top-performing geographic regions.
Nordstrom.com net sales increased 20 percent, primarily driven by continued expansion of merchandise selection.
Net sales in the off-price business increased 16 percent compared with the same period last year.
Nordstrom Rack net sales of $0.9 billion increased 13 percent, compared with the same period in fiscal 2014, reflecting the opening of 27 new stores. Nordstrom Rack comparable sales increased 1.7 percent, on top of last year's increase of 4.0 percent, consistent with its two-year stacked trend.
Nordstromrack.com/HauteLook net sales increased 50 percent for the second consecutive quarter. Gross profit of $1.3 billion, or 35.3 percent of net sales, decreased 6 basis points compared with the same period in fiscal 2014.
An ending inventory increase of 11 percent, compared with the same period last year, was consistent with expectations and reflected planned growth initiatives related to Trunk Club and Canada. This increase was relatively in-line with the net sales increase of 9.2 percent.
Selling, general and administrative expenses of $1.0 billion, or 29.1 percent of net sales, increased 86 basis points compared with the same period in fiscal 2014, due to planned growth initiatives related to Trunk Club and Canada and higher fulfillment costs associated with online growth.
The Nordstrom Rewards loyalty program continued to contribute to overall results, with members shopping three times more frequently and spending four times more on average than non-members. The Company opened approximately 350,000 new accounts in the second quarter. With 4.5 million active members, sales from members increased 10 percent in the second quarter and represented 44 percent of sales.
Expansion update
During the first half of the year, the Company opened two full-line stores and 11 Nordstrom Rack stores. In the third quarter, the Company plans to open three full-line stores (Vancouver, BC, Canada; Minneapolis, MN; and Milwaukee, WI), relocate a full-line store in Los Angeles, CA and open 16 Nordstrom Rack stores.
Nordstrom Inc. operates 304 stores in 38 states and Canada, including 118 Nordstrom stores in the U.S. and Canada, 178 Nordstrom Rack stores, two Jeffrey boutiques, and one clearance store. Additionally, customers are served online through Nordstrom.com, Nordstromrack.com and HauteLook. The company also owns Trunk Club, a personalized clothing service serving customers online at TrunkClub.com and its five clubhouses.
