Up and Down

Two retailers that went in different directions during the 1990s have both reversed fields early in this decade. While Nordstrom, a high-flyer in the 90s, reported a 41 percent drop from last year in profits in the quarter ending October 31, The Limited, which had struggled in the 90s, announced a 7 percent increase in adjusted third quarter sales (to $2.169 billion) and an 8 percent increase in comparable store sales.

For The Limited (Columbus, Ohio), the adjusted 1999 results reflect the August 1999 spin-off of Too, Inc., handled as if it had occurred at the beginning of 1999, and exclude the gain and taxes related to the sale of a 60 percent interest in Galyan's Trading Co. in 1999.

The Limited, Inc., through Express, Lerner New York, Lane Bryant, Limited Stores, Structure and Henri Bendel, presently operates 2819 specialty stores. The company also owns approximately 84 percent of Intimate Brands, Inc., the specialty retailer of intimate apparel, beauty and personal care products sold through 2337 stores under the Victoria's Secret, Bath & Body Works and White Barn Candle Co. brands.

For Nordstrom (Seattle), which had changed back to family management in September after a run of bad quarterly earnings reports, the bad news continues. The retailer attributed the loss in profits to slow-selling women's apparel, which in turn has led to steep price markdowns and to higher selling, marketing and administrative costs. The company also took charges during the quarter of nearly $44 million for severance pay to certain former executives and for the drop in value of the company's investment in Streamline.com, an Internet grocery retailer that has been plaguing Nordstrom ever since its acquisition in 1998. The e-retailer earlier announced that it will discontinue service next week.