Bloomberg reports that Nordstrom Inc. is raising its annual forecast after beating analysts earnings estimates in the first-quarter profit. Nordstrom carried less inventory and purchased items with lower price points.
Nordstrom said it was effective in aligning inventory levels with sales trends in the quarter, as consumers pared discretionary purchases including apparel and accessories amid mounting job losses in the U.S. recession.
Total inventory per square foot dropped 12 percent from a year earlier. Nordstrom reported May 7 that total revenue in the first quarter declined 9.2 percent to $1.71 billion.
"First of all, they carried less inventory, so they didn't have to mark down as much," retail analyst Patty Edwards said today in a telephone interview after the earnings were released.
"They also brought in stuff at lower price points," said Edwards, founder of Storehouse Partners LLC, based in Bellevue, Washington. "It's a pretty strong quarter from an operational point of view, though sales were down from last year."
Sales were down for Nordstrom in the first quarter. Full-line same-store sales for Nordstrom decreased 16.5 percent in the first quarter. Nordstrom also starting cutting prices on some items in February to battle the recession. The Nordstrom family also took pay cuts. Nordstrom's stock price is up 57% so far this year.
Bloomberg 
