Nordstrom Inc. banal dropped much than 20% successful extended trading Tuesday aft the retailer reported mixed quarterly results and said it needs to “move faster” to turn marketplace stock amid rising expenses and labour costs.
Nordstrom JWN, -1.21% said it earned $64 million, oregon 39 cents a share, successful the 3rd quarter, compared with $53 million, oregon 34 cents a share, successful the year-ago period, which included a taxation payment of $19 cardinal related to the CARES Act.
Sales roseate 18% to $3.6 billion, but fell 1% successful narration to the aforesaid 4th successful 2019, the institution said.
Third-quarter income included astir 1 week of the retailer’s day sale, which lifted quarterly income results by astir 200 ground points, Nordstrom said.
FactSet statement called for per-share net of 57 cents connected income of $3.5 cardinal for the quarter.
Nordstrom has “long benefited” from its absorption connected lawsuit service, its merchandise mix, marque partnerships and different strengths, but it is clip “to determination faster to capitalize connected these strengths and profitably turn marketplace share,” Chief Executive Erik Nordstrom said successful a statement.
Moreover, Nordstrom is “taking enactment to amended show astatine Nordstrom Rack, including optimizing inventory levels, amended balancing terms points and expanding marque awareness,” helium said.
Selling, wide and administrative expenses roseate successful the 4th mostly owed to labour costs, the institution said. Nordstrom is moving to amended merchandise margins to guarantee it tin service customers “seamlessly, contempt planetary proviso concatenation challenges,” it said.
The institution reiterated its fiscal 2021 outlook of full gross rising much than 35% compared with fiscal 2020.
Shares of Nordstrom ended the regular trading time down 1.2%
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