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NEW YORK, United States — Nordstrom Inc., the largest US luxury department-store chain, fell as much as 8.5 percent in late trading after holiday results missed analysts' estimates and the company gave a weak earnings forecast.
Excluding some items, earnings fell to $1.17 a share in the fourth quarter, the Seattle-based company said in a statement Thursday. Analysts had predicted $1.21 a share on average, according to data compiled by Bloomberg. Though sales rose 3.7 percent to $4.19 billion, that was below the $4.22 billion projection.
Slow mall traffic and a buildup in inventory forced department stores to rely more heavily on discounts in the holiday season. Nordstrom also is contending with a shift in consumer spending toward services and experiences, rather than clothing and other goods.
The shares fell as low as $48.25 in extended trading following the report. Through Wednesday’s close, Nordstrom had shown signs of rallying. It rose 5.8 percent this year after a 37 percent plunge in 2015.
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Nordstrom said it expects earnings of $3.10 to $3.35 a share this year, excluding some items. Analysts estimated $3.55.
By Lindsey Rupp; editors: Nick Turner and Kevin Orland.
