Nordstrom revenue stuck behind pre-pandemic levels, shares drop
Reuters
Published Aug 24, 2021 04:14PM ET
Updated Aug 24, 2021 06:06PM ET
(Reuters) -Nordstrom Inc's quarterly revenue declined 6% from pre-pandemic levels, sending the department store chain's shares down 7% aftermarket as investors pitted the lackluster result against strong growth at rivals Macy's (NYSE:M) and Kohl's (NYSE:KSS).
Nordstrom (NYSE:JWN) also raised its annual revenue forecast, but that did little to lift the mood after the company flagged supply chain issues and faced stiff competition from Gen-Z favorites ThredUp, T.J. Maxx and Target (NYSE:TGT).
Analysts also shrugged off sales at Nordstrom's annual Anniversary Sale event rising 1% from levels seen before the pandemic two years ago. The sale had extended into the first week of the third quarter.
"(Nordstrom) straddled the two quarters with the sale because without it, they would have been in deeper trouble come the third quarter," said Jane Hali, chief executive officer of Jane Hali & Associates.
Sales growth only during the event shows Nordstrom can only do business when there is a sale, Hali said.
Macy's and Kohl's, meanwhile, returned to revenue growth from pre-pandemic levels in their latest reported quarters as consumers refreshed their wardrobes with new apparel and footwear following the easing of COVID-19 curbs.
Like its peers, Nordstrom also flagged supply-chain issues ahead of the crucial holiday season, saying it could not sufficiently stock up on women's shoes and clothing in its Nordstrom Rack stores.
"We have seen real lumpiness in the global supply chain that has led to some shortages and more so just unevenness ... We do not expect those conditions to change anytime soon," Chief Executive Officer Erik Nordstrom said on an earnings call.
Nordstrom expects fiscal 2021 revenue to rise more than 35%, compared with an over 25% forecast earlier. Analysts on average expected revenue to jump 29%, according to Refinitiv IBES data.
The chain also beat estimates for profit and revenue in the second quarter.
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Written By: Reuters
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