Nordstrom says profits off 24 percent
Luxury retailer Nordstrom Inc. said Thursday its profit fell 24 percent in the first quarter, as recession rumblings in the U.S. crimped even wealthier consumers’ shopping habits.
But the company’s earnings still topped Wall Street’s expectations, sending shares up in after-hours trading.
Nordstrom’s net profit fell to $119 million, or 54 cents per share, from $157 million, or 60 cents per share, in the same three months last year.
Revenue slipped 4 percent to $1.88 billion from $1.95 billion a year ago.
Analysts had predicted Nordstrom would earn a slightly lower profit of 49 cents per share on slightly higher sales of $1.9 billion, according to a Thomson Financial survey.
•CBS Corp. is acquiring a big online reach with its acquisition of CNet Networks Inc. but also a company that’s faced heavy criticism from investors. Those concerns as well as the hefty $1.8 billion price tag helped send CBS’s shares down after the deal was announced Thursday.
CNet was an early player in the dot-com boom and survived the subsequent crash with a steady focus on technology news, reviews and entertainment. But its stock, which once traded as high as $79 during the bubble, has slumped over the last two years, leading to an investor rebellion that was gathering steam just as the CBS deal was announced.
The $11.50 per-share price CBS is paying represents a huge premium of 45 percent over CNet’s stock price the day before and seemed likely to resolve a looming proxy battle with its biggest investor, the hedge fund Jana Partners LLC, which has pressed for action to raise CNet’s stock price. Jana declined to comment.
Like other media companies CBS has been working quickly to expand its online audience as more viewers and advertisers go there.
•Nissan Motor Co. is lowering its U.S. sales forecast as the weak economy continues to wreak havoc on the auto industry.
Nissan North America Senior Vice President Dominique Thormann said Thursday that Nissan has lowered its industry forecast from 15.5 million vehicles to 15.2 million vehicles. Nissan’s forecast covers its fiscal year, which began April 1.
Some automakers have predicted a rebound in the second half of this year thanks to federal stimulus checks and lower interest rates.
But Thormann said any rebound likely would be limited, and Nissan is predicting a depressed industry into 2009.
Thormann also confirmed Nissan plans to have electric vehicles in the U.S. by 2010.