Several major retailers, including Dick's Sporting Goods, Lowe's, Target, and Macy's, have cited an increase in theft as a factor in their reduced earnings and are taking steps to address the problem.
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 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.
Thieves ransacked a Nordstrom store in Los Angeles, stealing nearly $100,000 worth of handbags and clothes, prompting the CEO to address the issue of retail theft and the need for better solutions.
Nordstrom shares plummeted over 10% as the retailer reported a sales drop, citing a decline in discretionary spending and record levels of retail theft.
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.