Oh No-rdstrom! Shares in department store company tumble 17 per cent after drop in first-quarter sales
Department store company Nordstrom saw its share price plummet more than 17 per cent in after-hours trading on Thursday.
The tumble came after it reported a drop in first-quarter sales at established stores and cut profit expectations for 2016.
The figures
Nordstrom reported revenue up 1.1 per cent to $3.25bn (£2.25bn), which was short of analysts’ expectations of $3.28bn, according to Thomson Reuters.
Read more: Nordstrom shares tumble as profits fall
Sales at its stores, meanwhile, fell 1.7 per cent, while analysts expected them to be flat year on year.
The retailer’s diluted earnings per share were $0.26 for the first quarter, ending 30 April.
Nordstrom said its first-quarter earnings were below the company’s own expectations.
Why it’s interesting
Nordstrom has now cut its adjusted profit forecasts for the year to $2.50-$2.70 per share.
This is down from $3.10-$3.35, while analysts were expecting $3.20, according to Reuters.
Nordstrom’s share price fell around 17 per cent to $37.90 in after-hours trading.
What the company said
Co-president Blake Nordstrom:
Our first quarter results were impacted by lower than expected sales. In response we have made further adjustments to our inventory and expense plans. As the pace of change in retail continues to accelerate, we remain committed to serving customers by taking steps that will continue to meet their expectations while driving profitable growth.