Shares of Nordstrom Inc. (JWN) fell after hours on Tuesday following the department-store chain’s full-year forecast announcement that left investors disappointed. The company projected full-year same-store sales to fall within a range of -1% to +2%, which fell short of FactSet forecasts for a 1.4% gain. As a result, shares saw a significant decline of 9.2%.
Fourth Quarter Highlights
For its fourth quarter, Nordstrom reported a net income of $134 million, translating to 82 cents per share. Excluding a “supply chain asset impairment and related charge,” the company’s earnings per share stood at 96 cents. Sales for the quarter were reported at $4.42 billion, showing an increase from the $4.32 billion recorded in the same quarter the previous year.
Analysts’ Expectations vs. Reality
Analysts surveyed by FactSet were anticipating adjusted earnings per share of 88 cents, on revenue of $4.38 billion. Nordstrom’s performance slightly surpassed these expectations.
CEO’s Statement
Chief Executive Erik Nordstrom emphasized the company’s focus on strategic initiatives aimed at driving growth and profitability in the business over the upcoming years. These efforts include expanding new Rack store openings, fostering digital growth for Nordstrom, and enhancing comparable store sales.
Overall, Nordstrom remains dedicated to navigating challenges and striving for success in the evolving retail landscape.