Nordstrom

Nordstrom (JWN  20.95) reported lower first quarter earnings as sales slipped, but the company beat analysts' estimates and raised its full year earnings outlook.

Nordstrom reported first quarter earnings of $0.31 per share, $0.05 better than the First Call consensus of $0.26.

Revenues fell 9.0% year-over-year to $1.71 billion; the consensus expected $1.69 billion.  Same-store sales in the quarter decreased 13.2% year-over-year.

Gross profit margins decreased 215 basis points year-over-year.  Nordstrom said approximately half of the decline was due to the impact of fixed buying and occupancy costs as a percentage of reduced sales.

Nordstrom was able to effectively reduce its inventory, as quarter-end total inventory per square foot was down 12% year-over-year.

Based on the first quarter performance, Nordstrom is revising its outlook for the 2009 fiscal year to reflect increases in gross profit and credit card revenue, partly offset by an increase in bad debt expense.

The company now expects full year earnings of $1.25 to $1.50 per share, including the impact of $0.06 tax benefit, up from earlier guidance of $1.10 to $1.40 per share.  The current consensus expects earnings of $1.27 per share.  Nordstrom expects same-store sales for the year to decline from 10-15%.