SEATTLE – Nordstrom Inc. said Thursday its overall profit jumped 37 percent at its department stores in the first quarter, but a key sales gauge fell short of Wall Street expectations.
Sales at established stores across the Seattle-based chain declined 0.8 percent in the quarter. Analysts surveyed by FactSet expected Nordstroms to report a dip of only 0.1 percent.
The figure of sales at established stores is a key retail indicator because it strips out the effects of newly opened and recently closed locations.
The sales results at the company’s discount Nordstrom Rack unit were more encouraging, with a 2.3 percent improvement in established-store sales.
But investors still sold Nordstrom’s stock, which fell more than 4 percent to $44.25 in after-hours trading. That’s after it dropped nearly 8 percent in Thursday’s regular-session trading.
Nordstrom reported it earned $63 million, or 37 cents per share, in the quarter. That’s up from $46 million, or 26 cents per share, last year.
The latest quarter included a one-time interest expense of $18 million. Without that, Nordstrom’s quarterly profit would have been 43 cents per share. Analysts surveyed by FactSet expected earnings per share of 28 cents.
Nordstrom said its total revenue grew 3 percent to $3.35 billion. Analysts were expecting $3.34 billion, according to FactSet.
Nordstrom reiterated its prediction for full-year earnings between $2.75 and $3 per share.
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