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Nordstrom Earnings Fall Below Market Expectations

The Seattle-based retailer missed estimates for fourth-quarter revenue, sending its shares down 9 percent in after-market trading.
Nordstrom Men's Store | Source: Courtesy
By
  • Reuters

NEW YORK, United States — Nordstrom Inc forecast a 2020 profit largely below market expectations on Tuesday, after the upscale apparel retailer missed estimates for fourth-quarter revenue, sending its shares down 9 percent in after-market trading.

The Seattle-based company has been struggling to attract shoppers at a time when they increasingly prefer retailers with a strong online presence such as Walmart Inc and Target Corp, as well as Amazon.com Inc.

Nordstrom expects to earn $3.25 to $3.50 per share in fiscal 2020, compared with analysts' estimates of $3.49 per share, according to IBES data from Refinitiv.

The company said the forecast does not include any impact from the coronavirus outbreak.

Net earnings fell to $193 million, or $1.23 per share, in the three months ended Feb. 1, from $248 million, or $1.48 per share, a year earlier.

The reported quarter included a 19 cents per share charge related to the integration of Trunk Club stores and debt refinancing costs.

Total revenue rose to $4.54 billion from $4.48 billion, but fell short of estimates of $4.56 billion.

The company also said Erik Nordstrom would be its sole chief executive officer, as it moves away from its co-president structure.

By Praveen Paramasivam, Melissa Fares; Editor: Shounak Dasgupta

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