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Retailers show mixed results
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August 16, 2001: 5:39 p.m. ET
Kohl's sees soaring sales, but Nordstrom hurt by markdowns in second quarter
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NEW YORK (CNNfn) - A pair of retailers delivered mixed second-quarter results Thursday, suggesting times are still tough for many in the industry.
Kohl's Corp. posted a 34 percent jump in earnings while Nordstrom Inc. posted a 17 percent decline. Both numbers were slightly ahead of expectations. Nordstrom also said third-quarter and full-year results would come in at the low-end of expectations, though Kohl's gave no guidance for future results.
For the quarter ended Aug. 4, Menomonee Falls, Wis.-based Kohl's (KSS: Research, Estimates) reported net income of $86.5 million, or 25 cents a share, compared with net income of $64.3 million, or 19 cents a share a year earlier. Analysts on average anticipated a profit of 24 cents a share, according to earnings tracker First Call.
Second-quarter sales jumped 21 percent to $3 billion from $2.5 billion.
Kohl's, with its focus on medium-priced merchandise, has been able to increase sales and maintain profit margins despite the slowing economy. In addition, the company has been steadily grabbing market share from department stores such as J.C. Penney (JCP: Research, Estimates) and Sears. (S: down $0.17 to $45.19, Research, Estimates) .
Kohl's shares ended 9 cents lower at $54.96 Thursday.
Meanwhile luxury retailer Nordstrom (JWN: Research, Estimates) reported earnings of $38.7 million, or 29 cents a share, compared with earnings of $45.4 million, or 35 cents a share a year earlier. Analysts polled by First Call expected a profit of 28 cents a share.
Second-quarter sales increased 6.1 percent to $1.6 billion from $1.5 billion.
The Seattle-based firm, which has been struggling as consumers cut back on spending, said earnings were hurt by more aggressive markdowns.
The company also said it sees third-quarter earnings between 16- to- 19 cents a share and full-year earnings of 97 cents to $1.01 a share. Analysts anticipate third-quarter earnings of 18 cents a share and full-year earnings of 97 cents a share, according to First Call.
Nordstrom's shares ended down 14 cents at $21.40 Thursday. 
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