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Nordstrom profit misses estimates on supply-chain problems, shares tumble -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO : Nordstrom Inc.’s company logo appears on a New York Stock Exchange (NYSE), New York, U.S.A, 22 October 2019. REUTERS/Brendan McDermid

(Reuters) – Nordstrom Inc (NYSE:) On Tuesday, the company missed its quarterly profit estimates and indicated supply issues at its low-priced stores going into the holiday season. This sent its shares lower by 18% during extended trading

Nordstrom has been experiencing supply-chain issues, and is facing shortages at its off-price Rack locations. This contrasts Macy’s and T.J. Maxx (NYSE:), which both boasted robust inventory levels for the critical holiday season.

The Nordstrom Stores’ third quarter net sales rose by 3% compared to 2019, but the off-price Rack stores saw a decrease of 8%.

Erik Nordstrom, Chief Executive Officer of Nordstrom Rack stated that “We are taking actions to improve performance at Nordstrom Rack,” including optimising inventory levels.

Nordstrom’s annual revenue growth projection of over 35% was maintained, while Macy’s raised last week its sales forecasts to 40%.

Nordstrom’s third-quarter total revenue increased by 18%, to $3.64Billion. But it failed to match its pre-pandemic level. According to Refinitiv International Business Economics, analysts were anticipating revenue of 3.55 billion.

For the Oct. 30 quarter, the company reported a profit in excess of analysts’ estimates of a profit at 56 cents per share.

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