The department store chain reported earnings that fell short of analysts’ expectations
Nordstrom reported earnings per share of 39 cents versus 56 cents touted. The revenue came in at $3.65 billion, higher than the $3.55 billion expected. At the same time, the store chain’s net income rose to $64 million from $53 million. Its sales went up as shoppers refreshed their wardrobes and returned to offices and social events.
However, digital sales fell 12% year over year and rose 20% on a two-year basis. Nordstrom also revealed that inventory levels grew 13% compared to the same period of 2019 because it pulled forward some goods orders to mitigate the ongoing supply chain shortage.
For the future, Nordstrom reiterated its revenue forecast. According to CEO Erik Nordstrom, the company needs to move faster to capitalize on its strengths and increase its market share.
After the news hit the wires, Nordstrom shares lost more than 23%. As of Tuesday’s market closing bell, Nordstrom stock price gained less than 1% since the beginning of the year.