By Maria Armental
Nordstrom Inc.'s first-quarter profit fell as acquisition, store
expansion and technology costs again offset higher sales.
The clothing retailer, which on Thursday affirmed its
projections for the year, has recorded higher costs related to the
acquisition of online men's retailer Trunk Club in the third
quarter of 2014 and overall store expansion.
Sales rose nearly 9.7% from the year-earlier period, while sales
at established stores, a key performance metric for retailers that
compares sales across stores opened for at least a year, rose
4.4%.
Founded in 1901 as a shoe shop in Seattle, the company, now in
the hands of the fourth generation of Nordstroms, operates more
than 300 stores in the U.S. and associated websites under its
namesake brand along with discount chain Nordstrom Rack, Jeffrey
boutiques and clearance store "Last Chance", Trunk Club and online
retailer HauteLook.
Overall, for the period ended May 2, Nordstrom reported a profit
of $128 million, or 66 cents a share, down from $140 million, or 72
cents a share, a year earlier.
Revenue rose to $3.22 billion from $2.93 billion a year
earlier.
Analysts surveyed by Thomson Reuters expected 71 cents a share
on $3.16 billion in revenue.
Inventory rose 19% from the year-ago period, outpacing the net
sales increase.
The report followed lackluster results from fellow retaillers
Kohl's Corp., Macy's Inc. and J.C. Penney Co. that have raised
further concerns about sluggishness among consumers.
Write to Maria Armental at maria.armental@wsj.com
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