Actionable news
All posts from Actionable news
Actionable news in JWN: NORDSTROM Inc,

Nordstrom shares drop as same-store sales disappoint

Nordstrom reported quarterly earnings that beat analysts' expectations on Thursday, but missed slightly on revenue and more so on same-store sales.

Here's how the company did compared with what Wall Street expected:

  • EPS: 67 cents, vs. 63 cents expected according to Thomson Reuters
  • Revenue: $3.5 billion, vs. $3.58 billion expected according to Thomson Reuters
  • Same-store sales: Decline of 0.9 percent, vs. the decline of 0.2 percent expected by Thomson Reuters

Shares fell about 3 percent in after-hours trading.

The department store reported diluted earnings per share of 67 cents, beating estimates of 63 cents, according Thomson Reuters.

It reported net sales of $3.5 billion for the quarter, which were up 2 percent from the same quarter the year prior. Revenue fell just short of $3.58 billion expected by Thomson Reuters.

Same store sales were more disappointing. The retailer recorded a drop of 0.9 percent, compared to the decline of 0.2 percent expected by Thomson Reuters.

For the Nordstrom brand, which includes its full-price stores, comparable sales dropped 1.9 percent. For its off-price concept Nordstrom Rack, comparable sales increased 0.5 percent.

Nordstrom family members recently put off efforts to take the retailer private until after the holiday season. Its performance over the next several months will be key to determining whether it can raise financing, as markets continue to be skittish amid retail headwinds.

Investors will be watching to see if it can deliver strong results in both its discount concept, Nordstrom Rack, and its traditional store format. In contrast to its peers, Nordstrom has kept a leaner store footprint and also continued to see same-store sales growth. It also has been more innovative, expanding early into digital and recently rolling out stores without merchandise.

This is breaking news. Please check back for updates.