Shares of Nordstrom (JWN) were down 17% in after-hours trading after the upscale department-store chain announced Thursday that its earnings fell by more than half in the first quarter.
The Seattle-based retailer says it earned $46 million, or 26 cents a share, down 64% from $128 million, or 67 cents a share, in the same quarter last year.
The company said its sales fell below expectations, even though they were slightly up. Net sales came in at $3.2 billion, up 2.5% from $3.1 billion a year ago. When it came to sales at stores open in the first quarter that were also open a year ago -- a measure that takes new stores into account -- sales increased 1.7%.
With adjusted profit was more than 40% below expectations, Nordstrom was a solid miss with analysts, based on the consensus estimates from S&P Global Market Intelligence.
Bruce Nordstrom, the co-president, says the chain that bears his name was also hit by deeper than expected discounting in the industry. But he says Nordstrom is fighting back.
"In response, we have made further adjustments to our inventory and expense plans," Nordstrom said in a statement.
The tougher results indicate how luxury retailers are starting to have a tougher time -- despite high stock prices and strong real-estate prices which often entice consumers to open their wallets. Still, Investors weren't impressed. Shares were trading at $37.20 after hours, down $8.03 or 17.75%.
The stock wasn't helped by the company's outlook for the rest of the year. Nordstrom is forecasting a 2.5% to 4.5% in overall sales, but a 1% decrease to 1% increase in same-store sales.
