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Nordstrom Plummets After Q1 Earnings Miss, Guidance Cut

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Nordstrom Plummets After Q1 Earnings Miss, Guidance Cut

Nordstrom, Inc. (NYSE: JWN) shares are getting pummeled, passing a 52-week low in the after-hours session after reporting a disappointing first quarter.

Earnings came in at 23 cents per share, which does not compare to the 43-cent estimate. Sales came in at $3.349 billion, missing estimates by $221 million.

The company cut 2019 guidance from $3.65-$3.90 to $3.25-$3.65. The company also cut sales growth from a range of 1-2 percent to a range of -2 percent to flat.

"While we expected softer trends from the fourth quarter to continue into the first quarter, we experienced a further deceleration. We had executional misses with our customers, and we're committed to better serving them. This is well within our control to turn around," said co-president Erik Nordstrom. "The strength of our inventory and expense execution helped mitigate a meaningful portion of our sales miss. We ended the quarter with inventories in solid shape, and our financial position remains strong."

Highlights

  • Net earnings were $37 million, down from $87 million in the same quarter of last year
  • Full-price net sales decreased 5.1 percent year-over-year
  • Total company digital sales grew 7 percent, representing 31 percent of the business

Nordstrom shares are down 9.51 percent at $34.25 in Tuesday's after-hours session. The stock closed at $37.85.

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