Nordstrom Raises 2016 Adj. EPS Outlook; Shares Surge As Q3 Profit Tops Estimates

(RTTNews) - Nordstrom, Inc. (JWN) announced, excluding the impairment charge, the company raised its annual earnings per share expectations to incorporate its third quarter results, which exceeded expectations primarily due to the company's efforts to align inventory and improve operational efficiencies. For fiscal 2016, excluding impairment charge, the company now expects: earnings per share in a range of $2.85 to $2.95; and approximately 3.5 increase increase in net sales.

Third quarter results included a non-cash goodwill impairment of $197 million related to Trunk Club, which the company acquired in 2014. Excluding the impairment charge, the company reported third quarter adjusted earnings per share of $0.84. Analysts polled by Thomson Reuters expected the company to report profit per share of $0.51. Analysts' estimates typically exclude special items.

Total company net sales for the third quarter increased 7.2 percent and comparable sales increased 2.4 percent, compared with the same period last year. Combined second and third quarter comparable sales, which removes the impact of an event shift, increased 0.4 percent compared with the same period last year.

Shares of Nordstrom were up more than 7% after hours.