Nordstrom (NYSE:JWN) shares were trading 1.7% lower Friday in the wake of a weaker-than-expected first quarter.
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The high-end retailer said its profit fell 2.7% in the latest period amid lower sales volume and higher costs. It also lowered its full-year guidance for total sales and same-store sales by half a percentage point each, calling for 4% to 6% sales growth and a 3% to 5% increase in comparable store sales.
While same-store sales rose 3.1% in the quarter, Nordstrom’s revenue of $2.75 billion missed Wall Street expectations. Its per-share earnings of 73 cents fell short of the company’s downbeat guidance provided in February.
But Stifel Nicolaus indicated Friday that the results were “better than the headline miss would suggest,” given “ambitious” first-quarter estimates from analysts. In a note to clients, the firm was bullish on Nordstrom’s sales growth in certain segments, including the “historically underperforming women's-apparel business.”
Nordstrom executives said during a conference call that extended cold weather led to weaker sales trends early in the first quarter, particularly in seasonal merchandise categories.
The second quarter should bring higher volumes, Nordstrom said, as the company plans to hold an anniversary sale on July 19.
Nordstrom’s stock rebounded Friday from session lows, trading at $60.07 in late morning trading. Shares have risen nearly 13% on the year.