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Off-price business leads the way at Nordstrom

Consumers that are looking to shop at brick & mortar retail continue to flock to off-price shopping locations, looking to stretch their consumer dollars further. We’ve seen this with Costco Wholesale and are seeing it again between the revenue mix at Nordstrom.

Nordstrom Inc. reported better-than-expected profit for its fourth quarter amid a strong performance by Nordstrom Rack and cost cuts.

Nordstrom’s total revenue rose 2.4% to $4.2 billion, less than expected.  Total same-store sales decreased 0.9%. In the Nordstrom brand, including U.S. and Canada full-line stores and Nordstrom.com, same-store sales decreased 2.7%.   In the Nordstrom Rack brand, consisting of Nordstrom Rack stores and Nordstromrack.com/HauteLook, same-store sales increased 4.3%. Net sales increased 10.7%.

Source: Off-price unit helps Nordstrom beats Q4 profit estimates | Chain Store Age

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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