09:17 ET Nordstrom Inc. (NOBE) 32 3/16: High-end department store concern
reported Q2 net of $0.47 a share, 5 cents better than the First Call estimate, vs year-ago
profit of $0.38 a share. Revenues rose 7.4% to $1.45 bln. NOBE shares indicated 1 pt
higher after climbing 1 7/16 pts yesterday. For the most part, retailers continue to post
very robust Q2 profits, including Kmart (KM), which reported this morning that it beat
its qtr by 2 cents. An exception is The Finish Line (FINL 13 3/4). The stock is indicated
3 3/4 pts lower this morning after company warned of a disappointing Q2, citing
increased promotional activity.
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RETAIL STOCKS. Several retailers report excellent earnings, although K-Mart misses.
Consumer spending has remained very strong in the U.S. and that has produced good
earnings momentum for most retailers. A collection of reports after the close Wednesday
and before the open Thursday continues this trend. Dillard's (DDS) reported earnings per
share of $0.45, 3 cents ahead of consensus estimates and up from year ago $0.40 per share.
Nordstrom (NOBE) came in at $0.47 per share, 5 cents ahead of estimates, and up from
$0.38 a year ago. The Gap (GPS) posted earnings of $0.34 per share, 3 cents ahead of
expectations, and twice year earlier profit of $0.17 per share as revenues jumped 40.7%. Even
K-Mart (KM) had a positive report, which earned $0.19 per share, two cents better of what
was expected. That was, however, up from just $0.06 a year ago although revenue rose a mere
3.4%. In general, retailers have reported excellent earnings numbers this week, and the stocks
of many companies have responded well. Wal-Mart (WMT) and Abercrombie & Fitch (ANF)
in the past couple of days have jumped after good earnings numbers. Today, it is likely that
some of these other retailers will also get a boost from these solid reports. At a time when the
overall stock market is subject to daily developments out of Japan, Russia, and
emerging markets, U.S. retailers offer something of a "safe haven." Small, specialty
retailers can be volatile and subject to earnings warnings, but top name retailers seem to keep
right on going. |
