Dive Brief:

• Nordstrom reported Q2 results Friday that easily bested analysts’ expectations.

• Q2 same-store stales rose 4.9%, past estimates of 3.8%, and overall sales rose 9% to $3.70 billion. Unloading its credit-card business didn’t boost the bottom line as much as expected, the company said.

• The department store has made an effort in e-commerce and in diversifying its brick-and-mortar offerings, with pop-ups and concessions. But, significantly, the retailer is reducing its clearance sales. This year, the company is cutting clearance days by 20%, and plans another 25% such reduction next year.

Dive Insight:

As Macy’s and other American department stores struggle, Nordstrom seems to shrugging off many of their challenges; J.P. Morgan described the retailer as “pulling away from the pack.” The Seattle-based retailer is coming to terms with constant discounts by reducing them, making merchandise and reductions both more relevant to shoppers.

The big story here for Nordstrom, and a lesson to many retailers, notably Macy's and other department stores, is the retailer's revised discount strategy. The company may be finding a way to actually let in a little daylight between “special” sales, being more upfront about “original” prices, and finding other ways to make shoppers happy.