SAN FRANCISCO — Nordstrom shares plummeted more than 19 percent in late trading Thursday after the retail chain missed Wall Street earnings estimates and lowered its guidance for the year.
The Seattle-based company blamed "softer sales trends," across all categories of merchandise, for a third-quarter performance that was "below company expectations."
Nordstrom reported fiscal third-quarter profit of $81 million on revenue of $3.33 billion. Profit was down almost 43 percent, which the company blamed in part on the sale of its credit card business and its acquisition of the Trunk Club chain. Net sales, which excludes credit card revenue, rose 6.5 percent to $3.24 billion.
Earnings amounted to 42 cents a share, or 57 cents a share after adjusting for non-recurring costs. Analysts surveyed by Zacks Investment Research were expecting adjusted earnings of 71 cents per share on revenue of $3.37 billion.
Sales at stores open at least a year — a key metric of retailer's health — rose 0.9 percent during the third quarter.
Nordstrom also lowered its full-year outlook to predict earnings in the range of $3.30 to $3.40 per share, down from a range of $3.85 to $3.95 a share. It expects sales at established stores to grow 2.5 percent to 3 percent, compared with its prior range of 3.5 percent to 4.5 percent growth.
The company said it opened four new full-line stores and 16 discount Nordstrom Rack outlets in the quarter ending last month.
Retailing rival Macy's also reported lower than expected results this week, blaming warmer weather that cut into shopping for winter apparel.
Nordstrom shares have fallen 20 percent since the beginning of the year, while the Standard & Poor's 500 index has fallen nearly 1 percent. The stock closed Thursday at $63.47 before the earnings report was released.
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Keywords: Nordstrom, Earnings Report