Nordstrom shares plunged as much as 16% after the department store chain reported its biggest intra-day decline in more than two years that showed disappointing comparable sales and slashed full-year guidance.
Nordstrom earned 39 cents a share on revenue of US $ 3.75 billion, while analysts were looking for EPS of 65 cents on revenue of US $ 3.67 billion.
Sales at Nordstrom’s full-price stores open for at least 12 months climbed 0.5 percent, far below the 5.8 percent growth at Nordstrom Rack, its discount chain that competes with TJ Maxx and Ross Stores and missing Street expectations.
The company’s earnings missed analysts’ original expectations, attributed to a US $ 72 million charge during the quarter that wiped out 28 cents a share, which stemmed from refunds to customers who were erroneously charged higher interest rates on its store credit cards.
The results looked poor as retailers like Macy’s and Walmart are benefiting from a strong economic backdrop and high consumer confidence heading into the holidays.
