Nordstrom Inc. posted stronger-than-expected third quarter earnings, and also boosted its full-year profit guidance.
For the three months ending on November 2, earnings came in at 81 cents per share, surpassing the Street consensus expectation of 64 cents per share.
Total revenues of 3.672 billion exceeded analysts' estimates, although falling - 2% from the year-ago quarter.
Co-President Erik Nordstrom emphasized on the Off Price business’ positive sales growth and increased profitability through strong inventory and expense execution as some of the strengths in the quarter.
Digital sales rose +7% from the year-ago quarter; the segment now accounts for more than a third of the company's total revenues. The growth helped to cushion a -4.1% decline in full price sales.
"We're encouraged by the momentum in our Full Price and Off Price businesses as we execute our holiday strategy to establish Nordstrom as a gifting destination for our customers", Nordstrom added.
For the full fiscal year 2020, the company raised the lower end of its prior guidance by 5 cents to a range of $3.30 to $3.50 per share. It also increased its EBIT margin forecast by adding 10 basis points. But it re-iterated its forecast of a -2% decline in net sales.