Investing.com -- Shares in Nordstrom Inc (NYSE:JWN) inched up in after-hours trading after its earnings for the first quarter were dented by international expansion and acquisition costs.
Nordstrom, an upscale fashion retailer based in Seattle, posted first-quarter net earnings of $128 million, down from $140 million during the same period in 2014. Nordstrom's sales reflected the opening of full-line stores in Ottawa and San Juan, Puerto Rico during the quarter, along with the launch of 10 discount Nordstrom Rack stores throughout the U.S. In addition, the company, which was founded by Swedish immigrant John W. Nordstrom in 1901, acquired The Trunk Club, a Chicago-based Men's shopping service, for an undisclosed amount last summer.
On Thursday, Nordstrom said the impact of the acquisition and its expansion into Canada reduced earnings before interest and taxes by approximately $19 million on the quarter. While Nordstrom increased its net sales by 9.8% on the quarter to $3.1 billion, same store sales rose by only 4.4% during the period. A strong quarter among Nordstrom's Women's and Men's Apparel division helped fuel the increase. It represents a reversal from recent periods where Nordstrom's Accessory and Shoe departments posted stronger earnings.
Nordstrom Rack, meanwhile, reported an increase of $90 million or 12% on the quarter – a reflection of the opening of the new stores. In terms of same store sales, a key metric for the company, Nordstrom Rack experienced a 0.2% decrease for the quarter.
Nordstrom's forward guidance of 2015 earnings per share between $3.65 and $3.80 remained unchanged.
The earnings came in the wake of disappointing U.S. retail sales for the month of April when department store revenues fell sharply by 2.2%. Since last April, retail sales nationwide have edged up only 0.9%, marking the lowest level of retail growth since late 2009.
Shares in Nordstrom gained 0.35 or 0.47% to 74.50 in after-hours trading. Earlier on Thursday, Nordstrom fell 2.02 or 2.65% to 74.15 ahead of the release.