WASHINGTON (dpa-AFX) - Shares of Nordstrom Inc. (JWN) plunged over 9% percent in extended hours on Tuesday after the department store chain's first-quarter revenues and earnings missed Wall Street view. The company also lowered its full year outlook.
Seattle-based Nordstrom's first-quarter profit dropped to $37 million or $0.23 per share from $87 million or $0.51 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.43 per share. Analysts' estimates typically exclude special items.
Revenues for the quarter dropped 3.5% to $3.44 billion from $3.56 billion last year. Analysts had a consensus revenue estimate of $3.57 billion.
The company said its top-line was impacted by three areas - loyalty, digital marketing and merchandise - which contributed to declines across its Full-Price and Off-Price businesses, in both stores and online.
'While we expected softer trends from the fourth quarter to continue into the first quarter, we experienced a further deceleration. We had executional misses with our customers, and we're committed to better serving them. This is well within our control to turn around,' said Erik Nordstrom, co-president, Nordstrom, Inc.
Looking forward to the full year, Nordstrom now expects earnings of $3.25 to $3.65 per share, down from prior forecast of $3.65 to $3.90 per share. Revenues are now expected to decrease 2% to be flat, compare to previous outlook of 1% to 2% growth. Analysts currently estimate earnings of $3.74 per share and revenues growth of 1.50%.
JWN closed Tuesday's trading at $37.85, up $0.39 or 1.04%, on the NYSE. The stock further slipped $3.45 or 9.11% in the after-hours trade.
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