Nordstrom stock falls more than 6% after tougher sales comparison

2 months ago 15
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Nordstrom Inc. shares fell much than 6% precocious Monday aft the retailer said its quarterly income doubled arsenic compared with the year-ago period, but fell somewhat arsenic compared with the 2019 quarter.

Nordstrom JWN, +3.11% earned $80 million, oregon 49 cents a share, contrasting with a nonaccomplishment of $255 million, oregon $1.62 a share, successful the year-ago period.

Revenue, which includes credit-card revenue, roseate $3.7 billion, from $1.9 cardinal a twelvemonth ago.

Net income roseate 101% arsenic compared with the 2nd 4th of fiscal 2020, but fell 6% arsenic compared with the 2nd 4th of fiscal 2019, Nordstrom said. One week of the retailer’s day merchantability fell into the 3rd 4th this year, accounting for immoderate of that decline, Nordstrom said.

Analysts polled by FactSet expected Nordstrom to study net of 27 cents a stock connected gross of $3.3 billion.

Shoppers “refreshed their wardrobes,” Nordstrom said, with income trends for shoes, apparel and accessories rising the astir arsenic compared with the archetypal quarter. Sales successful activewear, location and decorator categories besides continued to turn versus 2019, it said.

“We stay focused connected executing our strategy to triumph successful our astir important markets, broaden the scope of Nordstrom Rack and summation our integer velocity,” Chief Executive Erik Nordstrom said successful a statement.

Nordstrom tweaked immoderate of its fiscal-year 2021 outlook, calling for gross maturation of much than 35% for the year, compared with a erstwhile guidance of gross maturation of much than 25%.

The institution said that successful July it retired $500 cardinal successful unsecured indebtedness owed successful October utilizing cash. That volition chopped annualized involvement disbursal by $20 million, opening successful the 3rd quarter, it said. Nordstrom said it “remains connected way to trim its leverage ratio to astir 3 times by year-end.”

Shares of Nordstrom person gained 25% this year, compared with an beforehand of astir 19% for the S&P 500 scale SPX, +0.15%.

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