Nordstrom Shares Plunged 13% in Premarket Trading

Tiger Newspress2022-08-24

Nordstrom Inc cuts its annual revenue and profit forecasts on Tuesday, a sign that decades-high inflation was squeezing consumer spending on its high-end clothing and footwear.

Shares of the Seattle-based firm fell about 13% in premarket trading Wednesday.

Runaway inflation has prompted consumers to shift spending away from clothing and other discretionary items to groceries, hitting sales at apparel retailers and driving up inventories.

That has led companies including Kohl's Corp and Macy's Inc to offer steep discounts ahead of the back-to-school season, a crucial period for retailers.

Nordstrom said it expects fiscal 2022 revenue to rise 5% to 7%, lower than its previous expectation of 6% to 8% growth.

The company forecast fiscal 2022 adjusted profit per share between $2.30 and $2.60, compared with $3.20 to $3.50 previously.

Total revenue rose to $4.10 billion in the second quarter ended July 30, from $3.66 billion a year earlier. Analysts on average were expecting a figure of $3.97 billion, according to Refinitiv data.

Nordstrom's net income rose to $126 million, or 77 cents per share, from $80 million, or 49 cents per share, a year earlier.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • skyblue8
    2022-08-24
    skyblue8
    Could be worse going forward 
  • AndrewChia
    2022-08-24
    AndrewChia
    latest
Leave a comment
2