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Nordstrom Inc. today reported that revenues net of interest expense for its private-label and cobranded Visa credit card operations rose to $77 million for its fiscal second quarter ended Aug. 1, a 28.3% increase compared with $60 million during the same quarter a year ago. The segment posted a $13 million pretax loss for the quarter, however, because of a sharp increase in charge-offs; it posted a $12 million pretax loss for the same quarter a year ago. Nordstrom's loss from charge-offs during the quarter rose 73.3%, to $52 million from $30 million a year ago. The company cut the cost of its credit card loyalty program during the quarter by 13.3%, to $13 million from $15 million a year ago, and it reduced operational and marketing expenses by 7.4%, to $25 million from $27 million. As a company, the Seattle-based retailer reported overall net earnings of $105 million for the quarter, a 26.6% decline from $143 million a year ago, while the retailer's overall sales fell 6.6%, to $2.14 billion from $2.29 billion.

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