Nordstrom missed Wall Street targets for third-quarter revenue on Tuesday as sticky inflation pressured consumer spending in the months leading up to the all-important holiday shopping season. Shares of the upmarket department store chain fell nearly 1 percent in volatile after-market trading.
Nordstrom executives said in a post-earnings call that the active, beauty and accessories segments were leading sales growth. The company’s eponymous label recorded a 9.4 percent drop in sales while discount banner Rack declined only 1.8 percent, its smallest fall in five quarters, as efforts to bring in trendier brands started to pay off.
That, coupled with lower markdowns, helped the company post a 180-basis point increase in quarterly gross profit. Total revenue fell 6.4 percent to $3.32 billion, missing analysts’ estimates of $3.40 billion, according to LSEG data. Excluding items, Nordstrom earned 25 cents per share, topping estimates of 13 cents.
Nordstrom
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