NEW YORK (AP) — Shares of Nordstrom climbed in aftermarket trading Thursday after the retailer reported stronger-than-expected results for its first quarter.
Nordstrom's net income slipped to 72 cents per share because of increased investments in technology and costs related to its impending launch in Canada. However its revenue improved. The company also said sales at locations open at least a year, an important measurement of retailer performance, picked up. All three measurements were better than Wall Street had expected.
Shares of the Seattle company jumped $5.77, or 9.4 percent, to $67.26 in aftermarket trading. It slipped 39 cents to $61.49 during the day.
Nordstrom Inc. said Thursday its net income fell 3 percent, to $140 million, or 72 cents per share, from $145 million, or 73 cents per share. Revenue rose 7 percent, to $2.93 billion from $2.75 billion.
Analysts expected net income of 68 cents per share and $2.86 billion in revenue, according to a survey by FactSet.
The company's sales at locations open at least a year grew 3.9 percent, which topped the 1.3 percent analysts had forecast. Those sales only include results from stores that have been open for more than a year, excluding those that have recently opened or closed.
Nordstrom also said it will look for a partner for its Nordstrom credit card receivables, or bills that haven't yet been paid. Those bills total about $2 billion. Nordstrom said the move would allow it to keep its focus on customers and increase its financial flexibility, and it said such a transaction would have minimal impact on operations and jobs.
The company maintained its guidance for the fiscal year. It expects net income of $3.75 to $3.90 per share, while analysts are forecasting $3.85 per share.
Nordstrom expects $12.84 billion to $13.08 billion in net sales and $374 million to $379 million in credit card revenue, or totals of $13.21 billion to $13.46 billion.
Analysts are projecting $13.33 billion in revenue on average.