Nordstrom Inc. (NYSE: JWN) The Company’s shares surged over 9% on Friday, a day after its quarterly same-store sales numbers trounced Wall Street estimates, leaving analysts impressed with the upscale retailer’s online channels and its clear inventories.
The Company’s shares, trading at USD 57.20 in premarket, are set to open at a near two-year high. Its shares were the biggest percentage gainer among the New York Stock Exchange listed companies.
On Thursday, Nordstrom reported its best quarterly same-store sales growth in three years, boosted by strong online sales of 23%. It also raised its forecast for full year profit.
“Believe JWN has a best-in-class digital platform and is well ahead of department store peers in terms of leveraging innovative technology,” Cowen & Co analyst Oliver Chen wrote in a note.
The Company has been investing in top locations and expanding its discount shopping chain, Nordstrom Rack to woo shoppers back that have increasingly defected to online channels and more fast-fashion brands, which offer the trendiest styles.
Nordstrom also has a Local concept store, where shoppers have personal stylists to them help pick out clothing and accessories, dressing rooms to try them on, online ordering, and services.
Analysts also cheered the Company’s inventory management and product assortment, which Nordstrom said was a “competitive advantage” for them. The Seattle-based retailer’s upscale products gives it an edge over online competition from players such as Amazon.com (NASDAQ: AMZN) as shoppers typically steer away from making expensive buys online.
In stark contrast, J.C. Penney Co Inc. (NYSE:JCP) said it had made fashion missteps that led to heavy discounting of its inventories, sending its shares down 27% on Thursday.