Nordstrom Profit Rises 62% but Shares Decline

Nordstrom Inc. said its fiscal second-quarter earnings rose 62% as shoppers bought more apparel at full prices. The company’s shares fell after profit was less than analysts’ estimates.

Net income increased to $106.9 million, or 75 cents a share, from $65.9 million, or 48 cents, a year ago. Sales in the three months ended July 31 rose 9.4% to $1.95 billion, the Seattle-based company said.

Nordstrom sold higher-profit accessories and children’s clothing and reduced inventory to limit clearance sales.

The per-share results were 2 cents less than analysts had estimated, according to Thomson First Call, after the company paid higher bonuses to employees after a 23% jump in Nordstrom’s share price.

Nordstrom reported earnings after the market close. Nordstrom shares fell $2.61, or 6.4%, to $37.95 in extended trading after declining 4 cents to $40.56 on the New York Stock Exchange.

The company raised its annual profit forecast, saying it expected profit of as much as $2.50 a share, compared with a previous forecast of as much as $2.46. Thomson First Call said analysts had expected $2.54.