Nordstrom Q3 Profit Tops Estimate; Cuts FY14 Earnings Outlook

(RTTNews) - Nordstrom, Inc. (JWN) reported net income for the third quarter of $142 million or $0.73 per share, compared to $137 million or $0.69 per share for the year-ago quarter.

The company completed its $357 million acquisition of Trunk Club in August. In the third quarter, the impact of the acquisition reduced earnings per share by $0.04, of which $0.03 represented purchase accounting charges related to performance incentives, amortization of intangible assets and deal costs and $0.01 related to the issuance of shares.

Net sales for the third quarter rose to $3.04 billion from $2.79 billion in the same quarter last year. Total revenue for the third quarter grew to $3.14 billion from $2.88 billion a year ago.

Analysts polled by Thomson Reuters expected the company to earn $0.71 per share on revenue of $3.10 billion for the third quarter. Analysts' estimates typically exclude special items.

Looking forward, the company lowered its full fiscal year 2014 earnings outlook to a range of $3.70 to $3.75 per share from its prior outlook of $3.80 to $3.90 per share, to reflect the acquisition of Trunk Club, which is expected to reduce earnings per share in fiscal 2014 by about 3%.

The company now expects full year sales growth of about 7.5%, compared to its prior outlook of 6.5% to 7.5%.

Analysts currently expect the company to earn $3.86 per share on revenue growth of 7.00% for the fiscal year 2014.