Pedestrians walk past a Nordstrom Inc. store.
Ben Nelms | Bloomberg | Getty Images
Nordstrom‘s stock soared by more than 17% after the company released a mixed earnings report that showed weakening sales, but handily beat Wall Street profit estimates.
Here’s how the company did, compared with what Wall Street was expecting, according to Refinitiv consensus estimates:
- Adjusted earnings per share: 90 cents, vs. 75 cents estimated
- Revenue: $3.87 billion, vs. $3.93 billion estimated
Sales at full-price department stores were down 6.5%, while sales at its off-price Nordstrom Racks fell 1.9%. The company slashed their net sales guidance for the fiscal year and earnings guidance.
The company is among a host of department stores that is struggling to grow sales. Annual sales at U.S. department stores have dropped 20% from 2017 to 2018, and are on pace to fall more this year, according to the U.S. Census Bureau. Nordstrom’s stock has fallen 57% in the past year, valuing the company at $4 billion.
Tariffs on Chinese apparel and accessories also loom over Nordstrom, as retailers across the board work to keep costs low for the consumer.
Nordstrom’s first department store for women is set to open in New York City on Oct. 24. It marks the largest single-project investment in the company’s history. It also opened up a men’s store in April 2018 and previously only operated a small handful of off-price Nordstrom Racks in the city.