Nordstrom shares climb as e-commerce sales increase quarterly outcomes

(Reuters) – Nordstrom Inc’s ( JWN.N) shares rose over 9 percent on Friday, a day after its quarterly same-store sales numbers trounced Wall Street estimates, leaving experts impressed with the upscale retailer’s online channels and its clear inventories.

FILE PICTURE: The Nordstrom store is visualized in Broomfield, Colorado, U.S., February 23, 2017. REUTERS/Rick Wilking/File Picture

The business’s shares, trading at $57.20 in premarket, are set to open at a near two-year high. Its shares were the greatest portion gainer amongst the New York Stock Exchange listed business.

On Thursday, Nordstrom reported its finest quarterly same-store sales development in three years, increased by strong online sales of 23 percent. It likewise raised its projection for full year earnings.

“Believe JWN has a best-in-class digital platform and is well ahead of outlet store peers in regards to leveraging ingenious innovation,” Cowen & & Co expert Oliver Chen wrote in a note.

A minimum of 6 brokerages raised their price targets on the Nordstrom stock after the business published strong quarterly results throughout the board. Telsey Advisory Group’s Dana Telsey was the most bullish, raising the target price on the stock by $8 to $65.

The business has been purchasing top locations and expanding its discount rate shopping chain, Nordstrom Rack to woo buyers back that have actually significantly defected to online channels and more fast-fashion brands, which offer the trendiest designs.

Nordstrom likewise has a Regional idea shop, where consumers have personal stylists to them assist choose clothing and devices, dressing spaces to attempt them on, online buying, and services.

“Nordstrom’s initiatives are starting to bear fruit and have actually positioned it as a leader in the market,” Telsey stated in note titled “Nordstrom shooting on all cylinders.”

Experts also cheered the business’s stock management and product variety, which Nordstrom stated was a “competitive advantage” for them.

The Seattle-based merchant’s upscale products offers it an edge over online competitors from gamers such as ( AMZN.O) as buyers typically steer far from making expensive buys online.

In stark contrast, J.C. Penney Co Inc ( JCP.N) stated it had made style mistakes that led to heavy discounting of its stocks, sending its shares down 27 percent on Thursday.

Cowen’s Chen said that the company could report better comparable sales in the future on the strength of its digital development and strong stock management that is keeping their line fresh.

“The finest is yet to come as the business opens its New York store, enhances its supply chain, and continues to take advantage of the shift in consumer spending online,” Telsey said.

Reporting by Aishwarya Venugopal in Bengaluru; Modifying by Shailesh Kuber

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