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Nordstrom’s net income slips in Q4; plans 31 new stores
Seattle – Holiday markdowns and costs associated with growing its Nordstrom Rack outlet brand and planned entry into Canada had a negative impact on net earnings at Nordstrom Inc. during fourth quarter 2013. Fourth quarter net earnings slipped 6% compared to the same quarter the prior year, to $268 million from $284 million.
Net earnings for the full fiscal year remained almost flat, slightly rising to $735 million from $734 million. Both earnings figures fell short of Wall Street expectations.
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Nordstrom 'Rack’s' up sales
Rapid expansion of Nordstrom Rack stores and strong sales at the off price division enabled the department store retailer to exceed its fourth quarter profit forecast.
The company said same store sales at Rack increased 3.6% on top of a price year increase of 7.1% while sales at full line stores declined 3.3% after increasing 2.2% last year.