Nordstrom shares profit lost by Investing.com

Investing.com – Shares of the Nordstrom department store chain (NYSE 🙂 fell nearly 9% after the sale, after a shortfall in profits and first quarter fiscal revenue. Nordstrom has also cut its forecasts.

Nordstrom expected to earn between $ 3.65 and $ 3.90 per share for the year. New forecasts range from $ 3.25 to $ 3.65. Revenue growth is expected to decrease by 2%. It had increased from 1% to 2%.

For the quarter, 23 cents per share, the estimate of analysts polled by Investing.com 43 cents. Revenues were $ 3.44 billion, down 3.3% from the previous year. The estimate of Investing.com was $ 3.57 billion.

The company said its main problem was a 5.1% drop in full-price merchandise sales. Digital sales jumped 7% from one year to the next. There were also a number of performance issues, including a major problem with his improved loyalty program.

Nordstrom shares rose 1.12% to $ 37.89 in regular trading. But they are down 18.7% this year on the basis of Tuesday's close. They reached a minimum of 52 weeks of $ 36.37 on Friday. This corresponds to 44.2% of the peak of $ 67.75 reached in early November in 52 weeks. If the market's reaction to the market results report continues Wednesday, stocks could reach a new low of 52 weeks and reach levels never seen since 2011. The consensus target is $ 46.94, but the analysts will probably reduce it in the coming months. days.

Like many old department store chains, Nordstrom has been hard hit by the boom in online shopping. He has invested millions of dollars to facilitate purchases on his website and has proven results. Digital sales have not only increased by 7% over the previous year, but now represent 31% of total sales, compared to 28% a year earlier.

Nordstrom defines its digital businesses as "digitally assisted online sales and store sales, which include Online Buy, In-Store Pickup (" BOPUS ")," Ship to Store ", and Style Board, a digital sales tool. . "

However, the traditional full-price business is suffering greatly and even its widely admired non-store business has not had a strong quarter, with sales down 0.6%. Its gross profit margin dropped to 33.5% this quarter, down from 34.1% a year ago.

Nordstrom is still considering opening a new full-service store in New York in November.

Nevertheless, the company was able to buy back 4.1 million shares for approximately $ 186 million. Its profit margin before interest and taxes went from 4.4% to 2.4%.