Shares of department store chain Nordstrom (NYSE:JWN) dropped 25% in after hours trading after the company reported sales below pre-pandemic levels and its profit missed analyst estimates.
Nordstrom reported earnings per share (EPS) of $0.39 cents U.S., well below the average estimate of $0.55 that analysts surveyed by Refinitiv had expected.
Nordstrom said that sales at its off-price Rack division fell 8% in the third quarter versus the same period in fiscal 2019. Overall, sales at the company were down 1% versus pre-pandemic levels. Like many retailers, Nordstrom is offering comparisons to 2019 given the pandemic disruptions of 2020.
Nordstrom Chief Executive Officer (CEO) Erik Nordstrom said the company is "not satisfied at all with our Rack business." He added that said low inventory levels of women’s apparel and shoes led to a slower uptick in sales, but predicted improvement in the fourth quarter and 2022.
This was the second straight quarter in which the Seattle-based retailer has reported sales that were below pre-pandemic levels.
The shares fell 27% in late trading in New York immediately after its latest earnings were announced. Prior to today’s sharp decline, Nordstrom stock was up 5% year-to-date at $31.93.
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