Sales in 2Q15
Nordstrom’s (JWN) sales in 2Q15 increased by 9.1% to $3.7 billion from the comparable quarter of the previous year. The second quarter of fiscal 2015 ended August 1, 2015. The company exceeded the consensus Wall street analyst sales estimate of $3.68 billion.
Sales growth drivers
2Q15 was the fourth consecutive quarter when Nordstrom posted high-single digit sales growth. Nordstrom’s sales in 2Q15 were driven by strong growth in the company’s Rack stores and online businesses. The quarter also benefitted from the company’s anniversary sale. Sales of the company’s full-line stores in the United States increased by 1.1% to $2.1 billion.
The company’s growth investments in Canada, the Trunk Club acquisition, and the launch of Nordstromrack.com boosted sales in 2Q15. These new businesses brought in over $100 million in 2Q15. The company is now contemplating the extension of Trunk Club services to women, with a full launch planned in September. Nordstrom acquired Trunk Club, a personalized online clothing service provider for men, in August 2014.
Sales growth stronger than competitors’
Nordstrom’s sales growth in 2Q15 was better than its competitors in the department store industry. Macy’s (M) reported a 2.6% decline in its 2Q15 sales, following a decline in 1Q15 too. Macy’s attributed the decline in 2Q15 sales to weakness in certain center core categories and lower international tourist spending. Dillard’s (DDS), Kohl’s (KSS), and JCPenney (JCP) posted sales growth of 2.5%, 0.6%, and 2.7%, respectively, in 2Q15.
Nordstrom’s focus on its online channels and the success of its off-price concept stores have helped it outperform its peers in the department store industry.
The next article in this series discusses the company’s same-store sales growth in 2Q15.