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Elaine Thompson / AP Photos
- Shares of Nordstrom plunged Tuesday night after the release of the dismal results of the first quarter.
- Earnings per share, sales, same-store sales and forecasts all fell short of expectations.
- The decline of more than 10% after the report sent the shares to a low of eight years.
- Watch Nordstrom Trade live.
Nordstrom shares plunged 10% Tuesday night. at a low of eight years. after several key measures. including comparable sales and forecasts for the full year, missed analysts' expectations.
"While we expected fourth-quarter trends to continue in the first quarter, we experienced further deceleration," said Erik Nordstrom, Nordstrom's co-chairman, in the statement.
"We have had problems with our customers and we are committed to serving them better. It is well in our power to turn around. "
Here's how the results compare to what Wall Street analysts interviewed by Bloomberg expected:
- Returned: $ 3.44 billion ($ 3.48 billion expected)
- Adjusted earnings per share (EPS): $ 0.23 ($ 0.43 expected)
- Comparable sales: -3.5% (-0.1% expected)
The retailer's perspective on several measures is bleak compared to his previous expectations.
Nordstrom's net sales for full-year 2019 were unchanged, down 2% from the previous estimate, an increase of 1% to 2%. Meanwhile, he sees his credit card revenue growing at a lower-than-average rate, having already anticipated medium to high growth.
Nordstrom has announced its intention to expand its presence in New York, its largest online sales market, and is "on track" to open its flagship store on October 24th.
The retailer repurchased 4.1 million shares for $ 186 million during the quarter ended May 4th.
Prior to the report, Credit Suisse analysts led by Michael Binetti warned that Nordstrom could face a difficult quarter, pointing out that the market had not yet fully understood the "depth of the decline in sales" of its core business.
"An extremely bearish feeling is currently leaving us neutral," they said. "But our checks were almost unanimously negative in the first quarter."
They described the underperformance of Nordstrom's full-price stores as "alarming", and said they expect retail sales, a common measure of retailers' health, to remain stable for the first quarter. .
The wider community of analysts was cautious about Nordstrom before the report was released. 16 of 24 analysts surveyed by Bloomberg said "pending".
Nordstrom was down 19% this year until the market closed on Tuesday.
Insider Markets
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