Clothing retailer Nordstrom Inc. has unveiled its first quarter results ended on April 30, 2016. The company reported that its net sales surged 2.5 per cent to US $ 3.2 billion while comparable sales plunged 1.7 per cent in the first quarter, compared with the same period last year.
As per the company release, net earnings in the reporting period stood at US $ 46 million and earnings before interest and taxes (EBIT) were US $ 106 million compared with net earnings of US $ 128 million and EBIT of US $ 245 million in the corresponding period of fiscal 2015. Gross profit, as a percentage of net sales, of 34.2 per cent dropped 164 basis points compared with the same period in last fiscal.
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Additionally, Return on Invested Capital (ROIC) for the 12 fiscal months ended April 30, 2016 was 10 per cent compared with 12.2 per cent in the prior 12-month period. The company said that the plunge was primarily due to reduced earnings.
Commenting on the results, Blake Nordstrom, Co-president, Nordstrom said, “Our first quarter results were impacted by lower than expected sales. In response we have made further adjustments to our inventory and expense plans. As the pace of change in retail continues to accelerate, we remain committed to serving customers by taking steps that will continue to meet their expectations while driving profitable growth.”
