Nordstrom Profit Increases 34%

Nordstrom Inc. said Tuesday that fourth-quarter profit surged 34% as demand for men’s suits and women’s handbags increased holiday sales.

Net income climbed to $140 million, or $1 a share, from $104.3 million, or 74 cents, a year earlier, the Seattle-based retailer said. Adjustments in lease accounting trimmed profit by $4.7 million, or 3 cents. Revenue in the quarter ended Jan. 29 increased 9.4% to $2.1 billion.

Sales at stores open at least a year, known as same-store sales and a key measure of retail health, rose 7.2%, more than double the company’s forecast. President Blake Nordstrom, 44, reduced the need for clearance discounts by tracking slower-selling items and offering smaller, earlier markdowns. The company has also benefited from growing demand for designer clothing and purses.

Shares of Nordstrom, which reported earnings after the close of regular trading, climbed 81 cents to $51.56 on the New York Stock Exchange and have gained 10% this year.

The company was expected to have profit of $1.02 a share, the average estimate of analysts polled by Thomson First Call. Nordstrom said profit excluding the accounting change was $1.03.

Nordstrom expects profit this year of $3.25 to $3.35 a share, excluding the accounting change, higher than the $3.23 estimate from the Thomson survey.

Sales of women’s and children’s shoes, accessories and men’s apparel were strongest, Chief Financial Officer Michael Koppel said.