NORDSTROM DISSAPOINTS WITH THIRD-QUARTER EARNINGS
Upscale department store Nordstrom disappointed analysts and market watchers who had expected strong earnings. Instead, the Seattle-based retailer reported earnings per share of $0.42, about 30 cents below what many had predicted, and net earnings of $81 million, a significant decrease in comparison to the net earnings of $142 million from the third quarter of 2014.
Sales rose 6% in the third quarter to $3.3 billion, also down from the third quarter of 2014, while comparable sales, or sales at stores open for at least one year, increased a mere 0.9%. As a result, Nordstrom lowered its outlook for the year, and says full-year sales will rise only 7.5% to 8% from a previously guided range of 8.5% to 9.5%.
Like many other retailers, including Macy’s and Kohl’s, unseasonable weather across the country was part of the reason for the smaller-than-expected sales total. Nordstrom also said its earning price reflected transaction costs related to the $2.2 billion sale of its credit-card portfolio to TD Bank in October.
Nordstrom stock fell approximately 20 percent in Thursday’s after-hours trading.
