Nordstrom Beats Lowered Expectations

Nordstrom Inc. said it beat severely reduced earnings expectations for the third quarter despite a weak retail environment.

The apparel chain’s shares rose $1.68, or 9.4%, to $19.50 in extended trading on the news, after closing up 46 cents at $17.82 on the NYSE.

Nordstrom reported operating earnings of $10.5 million, or 8 cents a share, down from $23.4million, or 18 cents, a year ago. The year-earlier figure excludes a pretax charge of $44 million. Analysts polled by Thomson Financial/First Call were expecting profit of 4 cents after Nordstrom warned last month that it would not meet its original earnings goals.

Sales fell 1.8% to $1.2 billion, and sales at stores open at least a year declined 5.7%.

For the fourth quarter, Seattle-based Nordstrom said it expects earnings of 27 cents to 31 cents a share, well above analysts’ average forecast of 19 cents. The company said it will cut capital expenditures and slow its store expansion plans.