northern On Tuesday, Inc said net sales at its eponymous retail stores fell 3.4% in the third quarter and that the company’s overall sales have slowed over the past few months, “particularly in geographical areas with unseasonably warm weather.”
The company also cut its net profit forecast for the fiscal year ending January 2023. Shares of the Seattle-based luxury retailer fell about 9% in extended trading.
Nordstrom, like the competition Retailershas been heavily discounted to eliminate redundancies and obsolescence inventorywith the company expecting more promotions in the retail industry during the important holiday quarter.
The markdowns have hurt marginas well as rising material and labor costs, and supply chain disruptions.
managing director Erik Nordstrom said Nordstrom is freeing up excess stock to exit this year with good inventory levels, as the company battles an economic downturn that has “affected all customer segments, with a major impact on the lowest income groups.”
He also said sales had improved over the past two weeks.
The company said some customers waited until close to Christmas to make a purchase.
“Nordstrom is looking to take advantage of promotions to clear inventory, just like the rest of the sector,” said Simeon Siegel, senior analyst at BMO Capital Markets.
In the third quarter, sales in its discount division – Nordstrom Rack – fell 2%. total turnover fell 2.4% to $3.55 billion, but beat analyst expectations of $3.47 billion, according to Refinitiv data.
The company reported a net loss of $20 million, or 13 cents per share, for the quarter ended October 29, compared with a profit of $64 million, or 39 cents per share, a year. before. Quarterly includes an asset impairment charge related to supply chain technology.
Nordstrom adjusted earnings of 20 cents per share, 13 cents higher than estimates. It expects annual profits of $2.13 and $2.43, excluding share buybacks, cut from $2.45 to $2.75 ago. there.