Comp-store sales improved 0.6%, which failed to meet street estimates. Nordstrom’s full-line same-store sales grew 0.7% driven by Kids’ and Men’s segment, while Nordstrom Rack’s comp sales witnessed a growth of 0.4%.
Shifting its focus on digital side seems to be bearing fruit. E-commerce sales saw 18% growth year-over-year and it contributed 29% to the top-line sales in the quarter, which is a 4% improvement over prior year. The company continues to beef up its investments on the digital side of the business, which is going to bring in long-term benefits.
Return on invested capital (ROIC) improved 1.2% to 9.9% compared to 8.7% reported last year. Adjusted Debt to EBITDAR ratio, which shows the leverage ratio, increased to 2.6 compared to 2.3 reported last year.
E-commerce sales saw 18% growth year-over-year and it contributed 29% to the top-line sales in the quarter, which is a 4% improvement over prior year.
Based on the first quarter results, the fashion retailer is raising its earnings guidance for the year. The company expects its earnings to be between $3.35 and $3.55 per share and EBIT is now projected in the range of $895 million to $940 million.
Yesterday, Macy’s (M) reported better-than-expected results for the first quarter and lifted the outlook for the year, while J. C. Penney Company (JCP) reported a narrower loss in the first quarter helped by lower costs of goods sold and a decline in SG&A expenses.
Nordstrom’s stock is up 8% in 2018 and has increased over 25% over the last 12 months.