Nordstrom (NASDAQ:NDSN) Shares of the retailer fell Friday after Nordstrom announced that its holiday sales fell 3.5% year over year. In a statement, CEO Erik Nordstrom described the retail environment as “highly promotional.” The company also lowered its earnings outlook.
Nordstrom became the latest retailer to report declining holiday sales as consumers tightened their spending amid persistent economic challenges.
The department-store chain said Thursday that sales during the nine weeks that ended Dec. 31 declined 3.5% from a year earlier, leading the Seattle-based company to adjust its full-year forecast.
“The holiday season was highly promotional, and sales were softer than pre-pandemic levels,” Nordstrom said.
Nordstrom previously warned of softer consumer demand at its Nordstrom Rack discount chain, which targets lower-income consumers, than its flagship stores. Over the holiday period, Nordstrom Rack sales declined 7.6%, while Nordstrom banner stores recorded a 1.7% sales decline.
Nordstrom, according to its website, “is an innovative precision technology company that leverages a scalable growth framework through an entrepreneurial, division-led organization to deliver top tier growth with leading margins and returns. The Company’s direct sales model and applications expertise serves global customers through a wide variety of critical applications. Its diverse end market exposure includes consumer non-durable, medical, electronics and industrial end markets. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in over 35 countries.”
NDSN shares began Friday down two cents to $228.35.
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