Nordstrom Q4 Profit Hit by Trunk Club Acquisition
Nordstrom’s net earnings were down in the fourth quarter — $255 million vs. $268 million last year – despite net sales rising 9 percent to $3.9 billion. The retailer said the acquisition of Trunk Club hit Q4 earnings before interest and taxes by $11 million.
For the next fiscal year, Nordstrom says it expects its Canadian expansion, Trunk Club expenses and investments in a new fulfillment center to weigh on profits. Fiscal 2015 net sales are expected to be up 7 to 9 percent.
The retailer plans to open four full-line Nordstrom stores in the U.S. this year (San Juan, P.R.; Minneapolis, Minn.; Torrance, Calif.; and Wauwatosa, Wisc.) and two in Canada (Ottawa and Vancouver). It will also open 27 Nordstrom Rack off-price stores across the U.S.
Nordstrom currently operates 292 stores in 38 states: 116 U.S. Nordstrom stores and one Canadian store; 167 Nordstrom Racks; two Jeffrey boutiques and one clearance store.
