Nordstrom Third Quarter Earnings Up 22%

Seattle, WA, November 20, 2007--Nordstrom reported third quarter earnings rose 22%, but the luxury retailer lowered its outlook just days before the official start of the Christmas shopping season.

Nordstrom said its profit rose to $165.7 million, or $.68 per share, compared with $135.7 million, or $.52 per share, during the same period last year. This year, the third quarter started later, so it included more high-volume fall shopping days.

The results topped Wall Street's expectations. Analysts polled by Thomson Financial had forecast a profit of $.52 per share.

Revenue rose 5% to $1.97 billion from $1.87 billion in the year-ago quarter, just ahead of analysts' estimate for $1.96 billion in sales.

Same-store sales, a key indicator of a retailer's performance, rose 2.2% for the quarter compared with last year. Same-store sales measures growth at existing stores, excluding newly opened ones and stores that have closed during the year.

Nordstrom said its gross profit decreased in the quarter, hurt by markdowns of extra inventory. In a conference call, Chief Financial Officer Mike Koppel said inventory per square foot was 7% higher in the quarter than a year ago. Since then, the company has brought inventory levels back down to what it hopes is in line with demand from shoppers -- about 2% higher than last year, Koppel said.