Nordstrom reported earnings per diluted share of $0.66 for the first quarter ended May 2, 2015, which were in-line with company expectations, compared with $0.72 for Q1 ended May 3, 2014.
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Total company net sales increased 9.8 percent and comparable sales increased 4.4 percent, compared with the same period last year.
First quarter net earnings were $128 million compared with $140 million during the same period last year. Earnings before interest and taxes were $245 million, or 7.9 percent of net sales, compared with $265 million, or 9.3 percent of net sales, for the same quarter last year.
The impact of the Trunk Club acquisition and ongoing entry into Canada reduced earn
Gross profit, as a percentage of net sales, of 35.9 percent increased 7 basis points compared with the same period in fiscal 2014.
Ending inventory increased 19 percent compared with the same period in fiscal 2014, which outpaced the net sales increase of 9.8 percent. Ending inventory was in-line with company expectations, reflecting planned inventory investments to support store and online growth, including Nordstrom Rack, Nordstromrack.com and Canada.
Selling, general and administrative expenses, as a percentage of net sales, of 31.2 percent increased 141 basis points compared with the same period in fiscal 2014, reflecting planned growth initiatives related to Trunk Club, Canada and continuing fulfillment and technology investments.
The Nordstrom Rewards loyalty program continued to contribute to overall results, with members shopping three times more frequently and spending four times more on average than non-members.
The company opened over 285,000 new accounts in the first quarter. With 4.4 million active members, sales from members increased 11 percent in the first quarter and represented 38 percent of sales.
During the first quarter, the company repurchased 0.4 million shares of its common stock for $33 million. A total of $969 million remains under its existing share repurchase board authorization.
The actual number and timing of future share repurchases, if any, will be subject to market and economic conditions and applicable Securities and Exchange Commission rules.
Return on invested capital (ROIC) for the 12 months ended May 2, 2015 was 12.2 percent compared with 13.3 percent in the prior 12-month period. This decrease reflected the acquisition of Trunk Club in addition to ongoing store expansion and increased technology investments. A reconciliation of this non-GAAP financial measure to the closest GAAP measure is included
In the first quarter of 2015, Nordstrom opened two full-line stores and 10 Nordstrom Rack stores. ■