Nordstrom's 3Q: Better, But Not Better Enough

Nordstrom Inc. (Seattle) has announced that it expects earnings for its third quarter 2002 to be higher than last year but short of expectations.

The anticipated range of 13 to 14 cents per share will be nearly double the eight cents a share of third quarter 2001, but below the previous guidance of 16 to 20 cents a share.

The retailer says the shortfall primarily reflects record-keeping changes associated with the company's transition to a new inventory management system and isolated increases versus plan in selling and distribution center expenses. These items were partly offset by an adjustment to the company's inventory shrinkage accrual based on results from a physical inventory count that occurred during the quarter.

“Although we will come in below our range of guidance, it does not diminish our encouragement over six consecutive months of positive same-store sales,” said president Blake Nordstrom. “Additionally, we believe that expense and gross margin opportunities remain and we are positive about the fourth quarter and beyond.”

The company plans to report its quarterly results on Nov. 19, 2002, for the period ending Oct. 31, 2002.