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Nordstrom Profit Trails Estimates as Discounts Hurt Margins

Nordstrom Inc., the largest U.S. luxury department-store chain, posted fourth-quarter profit that trailed analysts’ estimates as the company cut prices to clear inventory.
By
  • Bloomberg

NEW YORK, United States — Nordstrom Inc., the largest U.S. luxury department-store chain, posted fourth-quarter profit that trailed analysts' estimates as the company cut prices to clear inventory.

Net income fell 4.9 percent to $255 million, or $1.32 a share, from $268 million, or $1.37, a year earlier, the Seattle- based company said Thursday in a statement. The average of analysts’ estimates compiled by Bloomberg was $1.35.

Chief Executive Officer Blake Nordstrom has been working to expand the department-store chain’s customer base with Trunk Club, a men’s online clothing service, and the flash-sale site Haute Look. The retailer also is looking to capture more bargain hunters with its Nordstrom Rack stores, where steeper discounts in the quarter hurt the company’s profitability.

Profit per share in the year through January 2016 will be $3.65 to $3.80, the company said. The average of 30 analysts’ estimates compiled by Bloomberg was $4.12.

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Nordstrom fell 2.7 percent to $75.05 at 4:14 p.m. in late trading in New York after the results were released. The shares had slid 2.8 percent this year through the close today.

By: Lindsey Rupp; editors: Nick Turner, Kevin Orland and James Callan.

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