Nordstrom Shares Tumble After Reporting Sales Drop and Record Theft
Nordstrom shares plummeted over 10% as the retailer reported a sales drop, citing a decline in discretionary spending and record levels of retail theft.
:max_bytes(150000):strip_icc()/GettyImages-1471025007-1189b023343e4d4ea1abc05015c694e4.jpg)
Posted 8/25/2023, 3:00:11 PM
investopedia.com
Relevant topic timeline:
Foot Locker's shares dropped by almost 33% as the shoe retailer reported a decline in quarterly sales due to "consumer softness" and an increase in shoplifting, echoing the challenges faced by other major retailers in the current economic climate.
Nordstrom exceeds sales and earnings expectations but maintains caution for the future, as revenue is expected to decline and the company faces challenges in its turnaround efforts.
Nordstrom's stock rose 6% after beating earnings and same-store sales estimates, despite reporting an 8.3% drop in sales attributed to the timing of its Anniversary Sale and the wind-down of its Canadian operations.
Nordstrom reports a decline in sales and profits in its fiscal second quarter, reflecting cautious spending by shoppers.
Nordstrom's CEO Erik Nordstrom addressed the issue of high theft losses, which have reached historical highs, during an earnings call, causing the company's shares to fall 4.3% despite better than expected sales and earnings, with overall sales dropping 8.3%.
Nordstrom executives stated that levels of theft at their stores have not exceeded expectations, despite a recent massive robbery at one of their locations, although they acknowledged that losses from theft are at historical highs and need to be addressed.
The former CEO of Home Depot, Bob Nardelli, criticizes the Biden administration for contributing to a "lawless society" as rising theft and crime negatively impact retailers, with Nordstrom reporting a 7.9% sales decline in the second quarter and other major retailers also experiencing a surge in theft.