Nordstrom beats profit estimates as it clears inventory

NEW YORK: Upscale US retailer Nordstrom Inc reported a better-than-expected quarterly profit as it said it had cut costs and cleared more inventory, sending its shares up 10 per cent in extended trading.
The Seattle-based company, which sells everything from apparel and footwear to home decor, said digital sales rose 4 per cent for the second quarter ended August 3, although weaker sales at both its full-price department stores and off-price Nordstrom Rack stores dragged total revenue down 5 per cent to $3.87 billion.
Nordstrom, like other brick-and-mortar retailers, is seeking ways to respond to changing consumer habits, with more shoppers preferring fast fashion brands and online giants like Amazon.com Inc rather than malls.
It has invested heavily in both its e-commerce business as well as its loyalty programmes, and said it was on track to open its first store selling only women’s merchandise in New York City this October. Other ways it is trying to engage millennials and other shoppers include concept stores such as ‘Nordstrom Local,’ which holds no stock but serves as a pickup centre for online orders while also offering personal styling and tailoring services. — Reuters