Nordstrom reported a better-than-expected quarterly profit as it had cut costs and cleared more inventory, sending its shares up 10% in extended trading. Digital sales rose 4% for the second quarter ended Aug. 3, although weaker sales at both its full-price department stores and off-price Nordstrom Rack stores dragged total revenue down 5% to $3.87bn. Nordstrom has invested heavily in both its e-commerce business as well as its loyalty programs, and was on track to open its first store selling only women’s merchandise in New York City this October. Other ways it is trying to engage millennials and other shoppers include concept stores such as ‘Nordstrom Local,’ which holds no stock but serves as a pickup centre for online orders while also offering personal styling and tailoring services. It has also worked on inventory management and is offering more on-trend product assortments as part of a turnaround plan to boost profit. Nordstrom net earnings fell to $141mn, or 90 cents per share, in the quarter from $162mn, or 95 cents per share, a year earlier. Analysts were expecting Nordstrom to report revenue of $3.93bn and a profit of 75 cents for the quarter. Nordstrom forecast net sales for the year falling by about 2%, at the lower end of its previous estimate.