Nordstorm earnings Q3: misses on comp sales, cuts outlook, shares tank

Nordstrom shopperFacebook/Nordstrom

• Nordstrom beat on both the top and bottom lines.
• But the retailer’s comparable sales fell short of Wall Street expectations.
• The company also slashed its full-year guidance.
• Watch Nordstrom trade live.

Nordstrom shares plunged as much as 16% Friday, their biggest intraday decline in more than two years, after the retailer disappointing comparable sales and trimmed its full-year guidance.

Here are the key numbers compared to Wall Street’s estimates, according to Bloomberg data.

• Adjusted earnings per share: $0.67 ($0.66 expected)
• Revenue: $3.75 billion ($3.69 billion expected)
• Same-store sales: +2.3% (+2.4% expected)
• Full-year earnings guidance: $3.50 to $3.65, down from $3.55 to $3.65 ($3.63 expected)
• Full-year sales guidance: $15.4 billion to $15.5 billion, down from $15.5 billion to $15.6 billion ($15.9 billion expected)

The earnings adjustment reflected a non-recurring estimated credit-related charge of $0.28, and the outlook excluded the estimated credit-related charge, according to the company. 

“This estimated charge resulted from some delinquent Nordstrom credit card accounts being charged higher interest in error,” Nordstrom said in a press release.

“Excluding this estimated charge, which was not incorporated in the Company’s prior outlook, earnings slightly exceeded the Company’s expectations, reflecting continued top-line strength across its Full-Price and Off-Price businesses.” 

In a note to sent out to clients on Thursday, RBC analyst Brian Tunick said, “Nordstrom’s Q3 print is viewed as disappointing given heightened expectations following very strong Q2 results.”