Nordstrom's 4th-quarter Sees a 20-percent Increase in Net Income
February 22, 2013
The Nordstrom brand has been answering many of the style questions of their customers for more than 100 years. While other upper-end retailers have fallen by the wayside to the many ups and downs the economy has produced in the past 100 years, Nordstrom seems to have a talent for weathering the storm and at times thriving. The fourth quarter report the company issued had some good numbers and a positive outlook for 2013 with more store openings. Net earnings of $284 million were higher than the $236 from the same quarter last year, an increase of 20 percent.
One of the reasons for the 20-percent increase is Nordstrom digital presence. The company has introduced an online store and implemented mobile and tablet applications to entice shoppers on their mobile devices. Online sales saw a big improvement in the fourth quarter with a 31 percent increase. The result was sales surpassed the $1 billion mark for the first time for online transactions, and of those mobile devices accounted for more than 20 percent.
A summary of the fourth quarter showed the same growth the company has been experiencing throughout the year. Net sales were $3.6 billion with earnings before paying in taxes, up by 20-percent compared to the same quarter the previous year. Other improvements for the company include same store sales up over six percent and Nordstrom Rack increased with net sales up by 23-percent in the fourth quarter.
Since 1901when it was just a small Seattle shoe shop working its way up to its current manifestation of more than 230 different types of outlets, Nordstrom has been growing and evolving with the times. The record number for sales it is experiencing is the result of significant investments in customer service improvements. The company wants the Nordstrom experience to be unique and the result has been a double-digit growth for three consecutive annual net sales.
"We aspire to be the retailer of choice wherever and whenever customers choose to shop with us. And we understand that our customers' definition of services (is) changing." Blake Nordstrom, the retailer's president,
Edited by Carlos Olivera