Shoppers leave a Nordstrom store on May 26, 2021 in Chicago, Illinois.
Scott Olson | Getty Images News | Getty Images
Nordstrom on Tuesday slashed its financial forecast for the full year as the department store chain faces a glut of inventory and slowing demand.
The retailer’s lowered forecast came even as it reported fiscal second-quarter earnings and sales ahead of analysts’ estimates. Its shares were down 13% in extended trading.
“Customer traffic and demand decelerated significantly beginning in late June, predominantly at Nordstrom Rack,” CEO Erik Nordstrom said in a press release. “We are adjusting our plans and taking action to navigate this dynamic in the short term, including aligning inventory and expenses to recent trends.”
Nordstrom now sees annual sales, including credit card revenue, up 5% to 7%, compared with a prior range calling for a 6% to 8% increase. It’s calling for adjusted earnings per share to be in a range of $2.30 to $2.60, down from a prior forecast of $3.20 to $3.50.
Here’s how Nordstrom did in its fiscal second quarter compared with what analysts were anticipating, based on Refinitiv estimates:
- Earnings per share: 81 cents adjusted vs. 80 cents expected
- Revenue: $4.1 billion vs. $3.97 billion expected
Nordstrom’s net income in the three-month period ended July 30 grew to $126 million, or 77 cents a share, from $80 million, or 49 cents a share, a year earlier.
Sales rose to $4.10 billion from $3.66 billion.
This story is developing. Please check back for updates.
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