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NEW YORK — A promotional sale and lower costs helped luxury retailer Nordstrom Inc.'s second-quarter profit meet Wall Street expectations, an analyst said Friday.
Thursday, Nordstrom said quarterly profit fell 27 percent but still met estimates amid lower prices to help lure cautious shoppers into its stores. The retailer also raised its full-year forecast.
Sales in stores open at least one year, or same-store sales, fell 12.3 percent, but rose 0.8 percent at the company's off-price store — Nordstrom Rack.
Stifel Nicolaus & Co. analyst Richard Jaffe, who rates the stock "Hold," said a stronger-than-expected anniversary sale boosted results above his estimates.
"We believe that this was achieved through better planning and effective partnerships with Nordstrom's suppliers and vendors," Jaffe wrote in a client note.
Nordstrom offered customers fall merchandise at attractive prices while remaining profitable, he added.
Management has also been "prudent" with managing expenses, said Jaffe, who expects retail selling, general and administrative expenses to decline around 5 percent in the second half of this year when compared to a year ago.
