Nordstrom Profit Doubles; Sales Rise 15%

Upscale department store chain Nordstrom Inc. said fiscal first-quarter profit more than doubled after sales increased at their fastest pace in more than a decade.

Net income in the period ended May 1 jumped to $68.7 million, or 48 cents a share, from $27.2 million, or 20 cents, a year earlier, the Seattle-based company said.

Total sales climbed 15% to $1.54 billion, the company said. Sales at stores open at least a year, a key measure of retail health, rose 13%.

Nordstrom has benefited as wealthier shoppers have splurged on shoes, handbags and designer dresses, said analysts including Linda Kristiansen at UBS. President Blake Nordstrom has trimmed inventory and tracked sales using new systems so that store orders can be modified to meet shifting demand.

Nordstrom was expected to earn 43 cents in the quarter, the average estimate of analysts polled by Thomson First Call.

Shares of Nordstrom fell 3 cents to $37.23 on the New York Stock Exchange. The stock has risen 8.5% this year.

Nordstrom reported the results after the end of regular trading.

The retailer predicted it would earn as much as $2.46 a share this year and 70 cents to 74 cents in the current quarter. Analysts polled by Thomson First Call expected Nordstrom to earn $2.34 for the year.

The company expects same-store sales to rise 4% to 6% this year, compared with an earlier forecast of 1% to 3%.