Boston, MA 05/19/2014 (wallstreetpr) – Nordstrom, Inc. (NYSE:JWN) soars higher by nearly 15% on Friday, a day after reporting impressive first quarter earnings, while it said that it is on a lookout for a financial partner to expand its $2 billion credit card business.
Better-Than-Expected First Profit
The Seattle based company reported surge in its same-store sales by 3.9% year-over-year, leading to an increase of overall revenue by up 6.5%. That in turn helped earnings to come in stronger than expected. The company posted net income of $140 million or $0.72 per share, in comparison to the net income of $145 million or $0.74 per share a year earlier. The results exceeded Nordstrom, Inc. (NYSE:JWN)’s own estimates of $0.70 earnings and analysts expectations of $0.68 per share. Revenue for the period of three months ended on May 3, came in at $2.84 billion, as against $2.6 billion in the same quarter previous year. However, the Wall Street had estimated the revenues of $2.86 billion. Despite rough weather conditions during early 2014, Nordstrom is able to keep its guidance for the year 2014 intact. The company anticipated non-GAAP earnings for the year 2014 to come in between $3.75-$3.90 per share, while it expects the same store sales to grow in the range of 2-4%. The market consensus for the full-year earnings is at $3.85.
Credit Card Business
Other than that, the retailed is also in search of a financial collaborator for its credit card business. Reportedly, Nordstrom, Inc. (NYSE:JWN) has hired Goldman Sachs and Guggenheim Secutities to assess the potential deal in this direction. The credit card business will help the company to concentrate on the execution of its core retail and customer businesses, but at the same time, giving it financial flexibility to either invest in new lines of pay off debt. The company does not see its decision to impact jobs or the present operations. Nordstrom said that it will provide update only after reaching a definitive agreement in this regard.