Nordstrom’s guidance undercuts Q3 numbers, stock slides
SEATTLE (AP) — Shares of Nordstrom Inc. slid in after-hours trading Thursday after the department store retailer issued weak guidance for the full year.
The Seattle-based company said it had third-quarter net income of $67 million, or 39 cents per share. Earnings, adjusted for non-recurring costs, came to 67 cents per share.
The results exceeded Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 64 cents per share.
The department store operator posted revenue of $3.75 billion in the period, which also beat Street forecasts. Six analysts surveyed by Zacks expected $3.68 billion. A year ago, Nordstrom earned $114 million, or 67 cents per share, on revenue of $3.54 billion.
Sales in stores open at least a year, a key metric of a retailer’s health, rose 2.3 percent during the quarter, with Nordstrom’s Rack off-price stores seeing a 5.8 percent gain. Full-price stores were nearly flat at 0.4 percent.
Nordstrom expects full-year earnings in the range of $3.55 to $3.65 per share, with revenue in the range of $15.5 billion to $15.6 billion. On average, analysts surveyed by FactSet forecast annual earnings of $3.61 on revenue of $15.91 billion.
Nordstrom’s stock slipped 10 percent to $52.50 in extended trading. Through the close of regular-session trading Thursday, the stock is up 25 percent since the beginning of the year.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on JWN at https://www.zacks.com/ap/JWN