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Nordstrom and Richemont make the news in Wall Street

Nordstrom fell 2.7 percent to 59.45 dollars after regular trading ended in New York. The shares had gained 14 percent this year before Thursday close, compared with a 16 percent advance for the Standard & Poor’s 500 Index.

The fashion retailer reported net income in the first quarter ended May 4 dropped 2.7 percent to 145 million dollars, or 73 cents a share, from 149 million dollars, or 70 cents, a year earlier, Nordstrom said. The 24 analysts surveyed by Bloomberg expected on average 76 cents.

On the back of the just released figures, earnings per share in 2013 will be 3.65 to 3.80 dollars, the retailer reaffirmed, helped by 5 cents by share repurchases. Analysts projected 3.80 dollars, the average of estimates compiled by Bloomberg.

Nordstrom shares fell about 3 percent in after-hours trading Thursday on news of the softer earnings, which were below estimates. The average of analysts’ estimates was 76 cents a share, according to Yahoo Finance.

Meanwhile, luxury top player Richemont saw growth in its Asia-Pacific market – which generates 41 percent of group sales, slowed to 5 percent in the year to the end of March, down from 46 percent a year earlier.

Closing the corporate news, Arthur Engel, CEO at Björn Borg, said: “In the first quarter 2013 we reported a decline in sales. At the same time we still see a need to expand wisely for future growth.

During the quarter we took an important step through the acquisition of the Finnish operations from the former distributor.”

The Swedish fashion group’s net sales fell by 6 percent with gross profit margin standing at 49.4 percent and operating profit also decreasing as it noted a 37 percent slip. Profit after tax were up to 6 million Swedish kroner.

Source: FashionUnited