(Reuters) – Nordstrom beat third-quarter revenue and profit estimates on Tuesday, helped by rising demand for popular brands including On Running, Hoka and Vuori at its stores.
The company’s shares rose nearly 1% in the increased sales.
Nordstrom beat third-quarter revenue and profit estimates on Tuesday, helped by rising demand for popular brands including On Running, Hoka and Vuori in its stores.
Adding new and popular brands to its shelves has helped Nordstrom attract more customers. The company’s efforts to focus on digital growth and expand stores for Rack, its discount brand, boosted sales ahead of the likely holiday season.
The Seattle, Washington-based company now expects growth of 1% to 2% from its previous range of flat to 2%.
Clothing chains such as Abercrombie & Fitch and Gap also benefited from consumers purchasing their new and current product offerings.
Nordstrom has bucked the cost-cutting trend at department stores by finding buyers for categories including women’s clothing, shoes and menswear, while peers such as Macy’s and Kohl’s have struggled with demand.
Nordstrom’s net income rose 4.3% to $3.46 billion in the quarter ended Nov. 2 from last year. Analysts, on average, estimate a 0.8% rise to $3.35 billion, according to data compiled by LSEG.
Benefits from strong full-price sales and improved variable pricing across the business helped the upmarket department store chain increase its profits.
Its quarterly profit as a percentage of sales rose 60 points to 35.6%.
The company reported adjusted net profit of 33 cents for the third quarter, compared with analysts’ expectations of just 21 cents.
During the period from July to September, foot traffic at Nordstrom and Nordstrom Rack stores grew 1.4% and 5% year over year, respectively, according to Placer.ai data.
In September, Nordstrom’s original family offered to take the department store private for $23 a share, joining the Mexican retailer in their latest venture.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Alan Barona)