Shoppers leave Nordstrom on May 26, 2021 in Chicago, Illinois.
Scott Olson | Getty Images News | Getty Images
Nordstrom On Tuesday, it lowered its full-year financial forecast as the supermarket chain faces a glut of inventory and slowing demand.
The retailer’s lower expectations came even as it reported fiscal second-quarter earnings and sales ahead of analyst estimates. Its shares are down 13% in extended trading.
“Customer traffic and demand slowed significantly beginning in late June, mostly at Nordstrom Rack,” CEO Eric Nordstrom said in a press release. “We are adjusting our plans and taking action to navigate this dynamic in the short term, including aligning inventory and expenses with recent trends.”
Nordstrom is now seeing an increase in annual sales, including credit card revenue, of 5% to 7%, compared to a previous group that required a 6% to 8% increase. It calls for adjusted earnings per share to be in a range of $2.30 to $2.60, down from a previous forecast of $3.20 to $3.50.
Here’s how Nordstrom performed in the fiscal second quarter compared to what analysts had been expecting, based on Refinitiv estimates:
- Earnings per share: 81 cents adjusted to 80 cents expected
- Revenue: $4.1 billion vs. $3.97 billion forecast
Nordstrom’s net income for the three months ended July 30 grew to $126 million, or 77 cents per share, from $80 million, or 49 cents per share, the previous year.
Sales rose to $4.10 billion from $3.66 billion.
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