Nordstrom reports Q2 earnings per share of 71 cents
17 Aug '07
3 min read
• Half-yearly clearance events for women's, men's and kids' merchandise in June delivered on-plan low-single-digit same-store sales results. Merchandise categories with performance above the full-line store average for the quarter were designer apparel, accessories, and men's apparel. Same-store sales results in our online store exceeded our mid-teen planned growth rate.
• Gross profit, as a percent of sales, increased 36 basis points compared to last year's second quarter. Improved sales and merchandise margin in women's, kids' and designer apparel contributed to gross profit rate expansion.
• Selling, general and administrative expenses as a percent to sales increased 110 basis points versus the same period of the prior year. Fixed expenses during the second quarter generally performed as intended. Planned cross-company projects supporting our multi-channel integration effort resulted in higher expenses on a percent to sales basis than our more typical historical rates.
• In our credit business, provisions for bad debt increased approximately $22 million versus last year. Approximately $14 million of the bad debt reserve is non-comparable due to the new accounting treatment for co-branded Visa receivables. The remaining $8 million of the incremental provision resulted from growth in both the Visa and proprietary card receivables ahead of plan, and from changes to assumed repayment rates versus last year.
• In other income, the company recorded a gain on sale of approximately $5.0 million for the disposal of an asset, which had a positive impact on earnings per diluted share of $0.01.
marketing@alchempro.com
