Nordstrom Inc.'s JWN board has authorized up to $800 million in additional share repurchases and also increased its quarterly dividend by 11%, as the high-end shoe and apparel retailer looks to boost shareholder returns.
The company said its latest buyback authorization, which runs through March 1, 2015, will be funded from existing cash on hand. The authorization is in addition to its existing repurchase program, which was approved by the board last year and has $344 million outstanding, as of Tuesday.
Nordstrom also said it is raising its quarterly dividend by three cents to 30 cents a share. The dividend carries a yield of 2.2%, based on Wednesday's closing price.
The company had about $1.29 billion in cash and cash equivalents and about 202.4 million shares outstanding at the end of the fourth quarter.
Nordstrom, benefiting from revived demand for its designer merchandise after a slump from 2008 to 2009 amid the global economic crisis, has generally seen profits grow. Its off-price Rack clearance stores continue to perform well, although customers have returned to buying full-priced merchandise in recent quarters.
Last week, Nordstrom reported its fiscal fourth-quarter earnings rose 40% as the high-end department store operator logged higher sales, benefiting from an extra week in the period.
Shares were up 1.3% to $54.60 after hours. The stock is flat over the past 12 months.
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