Nordstrom Q3 Profit Misses Views, Shares Tumble

Shares of

dipped around 21 percent in after-hours trading on Thursday after the company reported weaker-than-expected results for the third quarter and lowered its outlook for the year. The Seattle, Washington-based company reported a quarterly profit of $81 million, or $0.42 per share, versus a year-ago profit of $142 million, or $0.73 per share. The latest quarter included a reduction in EPS of $0.15 related to its credit card portfolio sale. Its total revenue climbed 6 percent to $3.33 billion, while net sales gained 6.6 percent to $3.22 billion. However, analysts were projecting earnings of $0.72 per share on revenue of $3.37 billion. Nordstrom.com net sales surged 11 percent in the quarter. Its total comparable sales increased 0.9 percent for the quarter. Inventory surged 8 percent versus the year-earlier period. Nordstrom now expects full-year profit of $3.30 to $3.40 per share, on sales growth of 7.5 percent to 8 percent. The company had earlier expected earnings of $3.85 to $3.95 per share on sales growth of 8.5 percent to 9.5 percent. It also projects comparable sales to rise 2.5 percent to 3 percent, versus its earlier outlook of 3.5 percent to 4.5 percent. Nordstrom shares tumbled 20.94 percent to $50.20 in the after-hours trading session.