Nordstrom (NYSE: JWN) reported top- and bottom-line estimates for its latest quarter, but its stock slumped after the retailer said sales have slowed over the past few months. Nordstrom also cut its profit outlook for the fiscal year ending in January.
The company reported a third-quarter net loss of $20 million and loss per diluted share of $0.13 for the quarter. Excluding a supply chain technology and related asset impairment charge, the company reported adjusted earnings per diluted share of $0.20 .
For the third quarter, net sales decreased 2.9% versus the same period in fiscal 2021 and gross merchandise value ("GMV") decreased 2.5%. Anniversary Sale timing, with one week shifting from the third quarter to the second quarter, had a negative impact of approximately 200 basis points on net sales compared with 2021. During the quarter, Nordstrom banner net sales decreased 3.4%, which included a negative impact of approximately 300 basis points from Anniversary Sale timing, and GMV decreased 2.9%. Net sales for Nordstrom Rack decreased 1.9%
"We delivered both topline and bottom-line results in line with our expectations in the third quarter while enhancing our strategic capabilities," said CEO Erik Nordstrom. "When customer demand decelerated in late June, we took action to align inventory and expenses with the changing trends, which has prepared us to navigate the current macroeconomic environment. This quarter our teams continued to advance our Closer to You strategy and supply chain capabilities, as we focus on initiatives to drive profitable growth and achieve our long-term strategic and financial goals."
JWN shares faded $1.68, or 7.4%, to $20.47.
