(Reuters) – Nordstrom Inc missed estimates for quarterly profit on Tuesday and signaled supply-related problems at its off-price stores heading into the holiday season, sending its shares down 18% in extended trading
Unlike Macy’s and T.J. Maxx parent TJX Cos Inc, which have touted strong inventory levels heading into the crucial holiday season, Nordstrom is grappling with supply-chain logjams, resulting in shortages of key items such as women’s shoes and clothing at its off-price Rack stores.
While third-quarter net sales at its Nordstrom stores rose 3%, compared with 2019 levels, its off-price Rack stores posted a decline of 8%.
“We’re taking action to improve performance at Nordstrom Rack, including optimizing inventory levels,” Chief Executive Officer Erik Nordstrom said.
Nordstrom maintained its annual revenue growth forecast of more than 35%, while rival Macy’s last week raised its sales expectations to as much as 40%.
Nordstrom’s total revenue rose about 18% to $3.64 billion in the third quarter, but still failed to catch up with its pre-pandemic levels. Analysts were expecting revenue of $3.55 billion, according to Refinitiv IBES.
The company posted a profit of $64 million, or 39 cents per share, for the quarter ended Oct. 30, missing analysts’ estimate for a profit of 56 cents.
(Reporting by Deborah Sophia in Bengaluru; Editing by Anil D’Silva)
