(Reuters) -Nordstrom barely raised its annual comparable gross sales forecast on Tuesday owing to softness in some classes together with footwear and attire towards the top of October.
Shares of the corporate, which surged about 33% to this point this 12 months, fell 1% in prolonged buying and selling.
“Whereas we proceed to be happy with our year-to-date outcomes, the exterior setting stays unsure,” Chief Monetary Officer Cathy Smith mentioned in ready remarks.
On the finish of the third quarter, stock grew 6%, outpacing gross sales progress of 5%. The rise was partly as a result of slower gross sales in seasonal classes like boots, sweaters and outerwear in sure areas, mentioned the corporate’s President Pete Nordstrom (NYSE:), including that they’ve curated sweaters and luxurious fragrances for holidays.
The slowing gross sales developments seen by Nordstrom in late October may point out “that the vacation outlook just isn’t nice,” mentioned Morningstar analyst David Swartz.
Nonetheless, the corporate beat third-quarter income and revenue estimates on the again of common manufacturers together with On Operating, Hoka and Vuori.
Nordstrom’s addition of sought-after manufacturers, together with its give attention to digital progress and increasing shops of its off-price model Rack, has boosted gross sales forward of a doubtlessly combined vacation season.
The corporate expects annual comparable gross sales progress of 1% to 2%, from prior forecast of flat to a 2% rise.
It bucked the development on tepid spending at shops by luring in consumers for classes together with ladies’s attire, sneakers and males’s attire, whereas friends resembling Macy’s (NYSE:) and Kohl’s (NYSE:) struggled with patchy demand.
Its complete income of $3.46 billion within the quarter ended Nov. 2, topped analysts’ estimates of $3.35 billion, in keeping with information compiled by LSEG.
Advantages from sturdy full-price gross sales and enhancements in variable prices throughout the enterprise helped increase quarterly gross revenue by 60 foundation factors to 35.6%. Adjusted revenue of 33 cents per share beat analysts’ estimates of 21 cents.
