{"id":53115,"date":"2023-08-25T21:20:54","date_gmt":"2023-08-26T01:20:54","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/nordstrom-shares-give-up-gains-after-warning-on-slowing-sales-trends-and-a-cautious-consumer\/"},"modified":"2023-08-25T21:20:57","modified_gmt":"2023-08-26T01:20:57","slug":"nordstrom-shares-give-up-gains-after-warning-on-slowing-sales-trends-and-a-cautious-consumer","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=53115","title":{"rendered":"Nordstrom shares give up gains, after warning on slowing sales trends and a \u2018cautious\u2019 consumer"},"content":{"rendered":"
\n

Shares of Nordstrom Inc. turned lower after hours on Thursday after management for the upscale department-store chain warned that sales had \u201cdecelerated\u201d at its namesake and off-price Nordstrom Rack stores, as consumers wrestle with higher prices and higher borrowing costs. <\/p>\n

The stock was down 4.3% after hours on Thursday, after initially rallying by that much in the minutes after the release of Nordstrom\u2019s
\n JWN,
\n -7.73%<\/bg-quote>
\n second-quarter results, which topped Wall Street estimates. <\/p>\n

\n

\u201cWe continue to see a cautious consumer, and it remains to be seen how changes will affect discretionary consumer spending in the second half of the year, particularly during holiday season,\u201d Chief Financial Officer Cathy Smith said on the retailer\u2019s second-quarter earnings call with Wall Street analysts. <\/p>\n

She also said the company had \u201cseen delinquencies rising gradually\u201d within Nordstrom\u2019s consumer credit-card business. Those delinquencies were \u201cnow above pre-pandemic levels, which could result in higher credit losses in the second half and into 2024.\u201d<\/p>\n

With trends still shaky, the company stuck with its full-year outlook for a 4% to 6% drop in sales, with adjusted earnings per share of $1.80\u00a0to\u00a0$2.20.<\/p>\n

The earnings add to the mixed results from other retailers this month \u2014 with some executives pointing to pressure on results from shoplifting and ongoing consumer struggles. However, results from Urban Outfitters Inc.
\n URBN,
\n -0.60%<\/bg-quote>
\n this week initially gave shares of that retail chain a boost, although those gains later evaporated. Still, Urban Outfitters said customers at its higher-end Free People and Anthropologie chains \u2014 which together make up a majority of the company\u2019s sales \u2014 were choosing \u201cfashion over price.\u201c<\/p>\n

In May, Nordstrom said that its higher-income customers, who are less likely to be spooked by the current bout of inflation, were \u201cresilient\u201d but \u201ccautious.\u201d And it said that its off-price Nordstrom Rack stores were helping to draw new customers.<\/p>\n

That trend at Nordstrom Rack continued through the second quarter, with customers drawn to the spontaneity of the bargain hunt. Elsewhere, executives called out more demand for \u201cdressed-up\u201d attire, sweaters and active footwear from the likes of New Balance and Nike Inc.
\n NKE,
\n +1.24%<\/bg-quote>.<\/span>
\n But they said they needed to do a better job attracting younger consumers. <\/p>\n

For the second quarter, the company said improvements in Nordstrom Rack and its Nordstrom stores helped sales. Nordstrom reported second-quarter net income of $137 million, or 84 cents a share, compared with $126 million, or 77 cents a share, in the same quarter last year. Nordstrom\u2019s adjusted earnings per share also came in at 84 cents. <\/p>\n

Revenue fell to $3.77 billion from $4.09 billion in the prior-year quarter, with the company\u2019s decision to wind down its business in Canada earlier this year still weighing on results. <\/p>\n

Analysts polled by FactSet expected Nordstrom to report adjusted earnings per share of 45 cents, on revenue of $3.68 billion and a same-store sales decline of 9.4%. <\/p>\n

Second-quarter net sales at Nordstrom banner stores fell 10.1% year over year, but that was a bit better than the 11.4% decline seen in the first quarter. Nordstrom Rack net sales fell 4.1% year over year, but that decline was more modest than the first quarter\u2019s 11.9% drop. <\/p>\n

The company said that sales in active and beauty items grew in the \u201clow single digits.\u201d It said children\u2019s apparel and men\u2019s clothing \u201cperformed better than average\u201d during the quarter. <\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Nordstrom Inc. turned lower after hours on Thursday after management for the upscale department-store chain warned that sales had \u201cdecelerated\u201d at its namesake and off-price Nordstrom Rack stores, as consumers wrestle with higher prices and higher borrowing costs. The stock was down 4.3% after hours on Thursday, after initially rallying by that much […]<\/p>\n","protected":false},"author":1,"featured_media":53116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-53115","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nNordstrom shares give up gains, after warning on slowing sales trends and a \u2018cautious\u2019 consumer | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Shares of Nordstrom Inc. turned lower after hours on Thursday after management for the upscale department-store chain warned that sales had \u201cdecelerated\u201d\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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