NordstromEarnings reported Tuesday were below analysts’ expectations due to labor costs, which impacted profits and sales. Nordstrom Rack also struggled to return pre-pandemic levels.

It sent the stock market down by more than 18% during extended trading.

Department store chains have tried to profit from shoppers who are looking to update their clothes as they return to work or social gatherings. Wall Street sales were higher than expected in the third quarter but the company has only reiterated its year-end revenue projections.

This was a stark contrast to the performance of rivals Macy’sAnd Kohl’sLast week was a week of. boosted estimates The remainder of the year. Each company has been more successful at passing on higher prices to customers and in managing their inventory.

Erik Nordstrom, chief executive officer of Nordstrom Corporation stated the company must act faster in order to maximize its strengths and expand its market share.

Erik Nordstrom released a statement saying that they are “focused on accelerating their transformation and improving results”.

This is how Nordstrom performed in the 3-month period ending Oct. 30, compared to what analysts had predicted using Refinitiv data.

• Earnings per share: 39 cents vs. 56 cents expected
• Expected revenue: $3.64Billion

From $53million, which was 34 cents per share a year ago, net income rose to $64,000,000, or 39cs per share. A Refinitiv survey revealed that analysts were looking for earnings per share of 56 cents.

Credit card sales also increased by $3.64 Billion to $3.09 Billion in 2013, surpassing the expectations of $3.55Billion. However, this is still a slight decrease from the Nordstrom report of $3.67 billion in the third quarter of 2019.

Nordstrom, the name of its flagship department store chain, saw revenue rise 11% from last year and climb 3% over a 2-year period. Customers came in greater numbers to Nordstrom’s stores. Shoppers also spent more on their purchases. Nordstrom saw strength in home goods, active apparel and designer brands as well as beauty.

Nordstrom Rack offers an off-price segment that is competitive with TJ Maxx and Macy’s Backstage, sales were up 35% from 2020 but fell 8% from 2019.

Rack said that the company is working to increase brand awareness. It also plans to invest in better inventory management and to balance prices so they are closer to shoppers’ expectations.

The 40% increase in digital sales was 12% over the previous year. Nordstrom pointed out that its Annual Anniversary Sale last year, which is primarily held online, but in-stores, was moved completely into the third quarter. This year, however, it fell only during the first week of the quarter.

Nordstrom reported that its inventory increased 13% over the same time period in 2019 due to Nordstrom moving forward certain orders to address ongoing supply chain issues.

The company expects that annual revenue including credit card sales will grow by more than 35% compared to last year. According to Refinitiv. Analysts were expecting a 36% growth.

Nordstrom stock has risen less than 1% in the past year, according to Tuesday’s close. Its market cap stands at $5.1 million.

Nordstrom’s earnings press release is available here here.

The story is still in development. Stay tuned for new updates.