Nordstrom's holiday shopping season malaise carried over into the first months of the year.
The upscale department store chain reported fiscal first-quarter profit Tuesday that missed Wall Street analysts' expectations. It also cut its annual sales forecast and its stock tumbled.
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"While we expected softer trends from the fourth quarter to continue into the first quarter, we experienced a further deceleration," said Erik Nordstrom, Nordstrom Inc. co-president, said in a statement.
The company reported net income of $37 million, or 23 cents a share. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 43 cents per share.
Seattle-based Nordstrom posted revenue of $3.44 billion in the period, down more than 3% from $3.47 billion in the year-ago period. Six analysts surveyed by Zacks expected $3.54 billion.
Online sales increased 7% and accounted for 31% of Nordstrom's total sales.
Nordstrom said it now expects full-year earnings to be $3.25 to $3.65 per share, down from a previous forecast of $3.65 to $3.90 a share. Analysts were expecting $3.72 per share for the year.
The company now expects total net sales for the current year to be anywhere from a 2% decrease to unchanged. That compares with the original forecast of a 1% to 2% increase.
Nordstrom's shares tumbled more than 9% to $34.40 in after-market trading after the release of the earnings report.
Elements of this story were generated by Automated Insights using data from Zacks Investment Research. Access a Zacks stock report on JWN at https://www.zacks.com/ap/JWN