Nordstrom Inc JWN shares are trading lower by 5.62% to $16.47 Friday morning after the company reported a net sales decrease of 3.5% for the nine-week holiday period ended December 31, 2022. The company also cut its FY22 EPS guidance from in the range of $2.30-$2.60 to a new range of $1.50-$1.70.
Nordstrom says the company took additional markdowns in order to finish the year in a healthy and current inventory position. Nordstrom expects year-end inventory levels to be down by a double-digit percentage compared with last year, and roughly at 2019 levels.
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"The holiday season was highly promotional, and sales were softer than pre-pandemic levels. While we continue to see greater resilience in our higher income cohorts, it is clear that consumers are being more selective with their spending given the broader macro environment," said Erik Nordstrom, chief executive officer of Nordstrom, Inc.
"Still, our team executed well, and we enter 2023 in a stronger position as we prioritized starting the new fiscal year with clean inventory levels, even if this required more markdowns than planned."
Nordstrom says the company is scheduled to report its fourth quarter and full-year 2022 financial results after the close of the financial markets on March 2, 2023. Additional detail on the company's financial performance and 2023 outlook will be provided at that time.
According to data from Benzinga Pro, JWN has a 52-week high of $29.59 and a 52-week low of $15.52.
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