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Nordstrom stock tanking on consumer spending and retail theft
Shares of Nordstrom are down on Friday after the company maintained a cautious outlook for 2023 due to consumer spending and retail theft.
“We continue to see a cautious consumer,” said Nordstrom finance chief Catherine Smith, adding sales slowed at both its eponymous stores and off-price Nordstrom Rack banner during the third quarter.
Total revenue fell about 8% to $3.77 billion in the second quarter ended July 29, compared to expectations of $3.65 billion, according to Refinitiv data.
Nordstrom said inventories dropped to 17.5% in the quarter for a third straight time.
Nordstrom CEO Erik Nordstrom also said theft at its stores was still a drag on earnings, though not any more than the company has already planned for this year.
“That needs to come down,” Nordstrom said, adding the company had taken steps such as partnering with local jurisdictions and law enforcement.
Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, said Nordstrom’s earnings indicate shoplifting and store card delinquencies are the new surprise warnings management and investors have to contend with.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| JWN | $15.41 | -1.41 | -8.35 |
Nordstrom earned 84 cents per share in the quarter. Analysts had estimated a profit of 44 cents.
Reuters contributed to this post.
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