Hing-end retailer Nordstrom Inc. (NYSE: JWN) is heading into the holiday shopping season in fine shape. There doesn't seem to be any slow-down in consumer spending for designer and luxury items. 3Q 2007 total sales increased 5.3% to just under $2 billion, and net earnings increased $30 million to $165.7 million or $0.68 diluted EPS. The all important same store sales figure increased 2.2%, less than its competitors, but still an increase. On the flip side, gross profit decreased due primarily to large markdowns caused by deficiencies in inventory management. Administrative expenses and cost of sales decreased as the company tried to control costs.

Nordstrom has plenty of competition in high-end retailing, and is concentrating on growing market share with the opening of 4 new stores in 3Q alone. Nordstrom sold off its remaining interest in Façonnable in 3Q, and netted about $21 million from the deal. The company has earmarked $3 billion in capital expenditures for 2008-2012, primarily for new stores and existing store remodels. Nordstrom has also authorized up to $2.5 billion for stock repurchase, as management feels very confident in the company's ability to generate positive cash flow. The company spent $750 million during 3Q 2007 to repurchase 16.4 million shares. Nordstrom will also pay out a dividend of $0.135 in December. Presently, the company is sticking with its previous FY guidance of $2.87-$2.91 diluted EPS.

The stock closed yesterday at $34.21, up $3.69 or 12% on the earnings news, though it is down slightly in trading this morning.