Nordstrom cuts outlook as bad news piles up for retailers

Jan 19, 2023, 4:42 PM | Updated: Jan 20, 2023, 7:12 am
FILE - Two pedestrians walk near a closed street entrance to a Nordstrom department store at the Gr...

FILE - Two pedestrians walk near a closed street entrance to a Nordstrom department store at the Grove mall in Los Angeles, Thursday, Dec. 2, 2021. Shares of Nordstrom are slumping in premarket trading Friday, Jan. 20, 2023 after the upscale department store chain cut its annual profit outlook amid lackluster holiday sales that forced it to slash prices. AP Photo/Jae C. Hong, file)

NEW YORK (AP) — Shares of Nordstrom are slipping in early trading after the upscale department store chain cut its annual profit outlook amid lackluster holiday sales that forced it to slash prices.

The disappointing report is the latest evidence that shoppers, including the well-heeled, have pulled back buying during the critical holiday season as they confront higher prices and borrowing costs.

Meanwhile, online furniture retailer Wayfair announced on Friday a round of layoffs as it deals with slowing sales after a pandemic-infused surge. It said it was cutting 1,750 workers, representing 10% of its global workforce as of Dec. 31. That number includes 1,200 or 18% of its corporate employees. The Boston-based company said the reorganization is meant to remove management layers and become more agile. Along with another restructuring last August, the company expects the moves to lead to $750 million in annualized cost savings.

The news comes as the government reported on Wednesday that retail sales fell in December, marking the second consecutive monthly decline and the biggest monthly drop for 2022.

Seattle-based Nordstrom said on Thursday after the markets closed that net sales declined 3.5% for the nine-week holiday period ended Dec. 31, compared with the previous year. For the Nordstrom brand stores, net sales slipped 1.7%, while net sales at the off-price Nordstrom Rack dropped 7.6%.

“The holiday season was highly promotional, and sales were softer than pre-pandemic levels,” said Erik Nordstrom, chief executive of Nordstrom Inc., in a statement. “While we continue to see greater resilience in our higher income cohorts, it is clear that consumers are being more selective with their spending given the broader macro environment.”

Nordstrom said that it’s entering the year in a stronger position with lean inventory levels. It expects year-end inventory levels to be down by a double-digit percentage compared with last year, and roughly at 2019 levels.

Nordstrom believes that revenue growth for its fiscal year, including revenue from credit cards, will be at the low end of its previously issued outlook of 5% to 7%.

For the year, the company now expects earnings per diluted share, excluding the impact of share repurchase activity, if any, of $1.33 to $1.53 per share, compared with its prior outlook of $2.13 to $2.43.

Nordstrom is slated to report final fourth-quarter results after the close of the financial markets on March 2.

Shares of Nordstrom fell 1.7% to $17.16 in early trading. Wayfair shares rallied more than 10% to $42.90.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

In this photo provided by the U.S. Coast Guard Pacific Northwest, a Coast Guard rescue swimmer reac...
Associated Press

Man rescued by Coast Guard wanted in ‘Goonies’ fish incident

A man who was saved by a Coast Guard rescue swimmer at the mouth of the Columbia River as a massive wave rolled the yacht he was piloting Friday was wanted for a bizarre incident in which police said he left a dead fish at the Astoria, Oregon, home featured in the classic 1985 film, "The Goonies."
18 hours ago
FILE - An Amazon company logo on the company's building in Schoenefeld near Berlin, Germany, March ...
Associated Press

Amazon violated labor law with delivery app

A Spanish court has ruled that Amazon broke labor laws by forcing more than 2,000 delivery drivers to use an app that the company controlled for scheduling work and payments and requiring them to use their own cars and cellphones on the job.
18 hours ago
Associated Press

Saturday’s Scores

GIRLS PREP BASKETBALL= Bellarmine Prep 54, Olympia 43 Chiawana 76, Hermiston, Ore. 41 Hazen 40, Liberty 36 Kamiakin 77, Pasco 17 Orcas Island 67, Concrete 13 South Kitsap 39, Bethel 37 ___ Some high school basketball scores provided by Scorestream.com, https://scorestream.com/ Copyright © The Associated Press. All rights reserved. This material may not be published, […]
18 hours ago
Associated Press

Saturday’s Scores

BOYS PREP BASKETBALL= Adna 66, Raymond 47 Goldendale 56, Kittitas 33 Issaquah 65, Newport-Bellevue 46 Klahowya 79, North Mason 50 Lummi 65, Lopez 25 Mount Vernon Christian 81, Shoreline Christian 33 Neah Bay 91, Taholah 36 Orcas Island 82, Fellowship Christian 36 Puyallup 63, Emerald Ridge 52 Woodinville 73, North Creek 49 ___ Some high […]
18 hours ago
Associated Press

Crash averted at Austin airport; FAA, NTSB to investigate

AUSTIN, Texas (AP) — A FedEx cargo airplane attempting to land at Austin-Bergstrom International Airport on Saturday morning had to reverse course after a second plane was cleared to depart from the same runway, according to the Federal Aviation Administration. “The pilot of the FedEx airplane discontinued the landing and initiated a climb out,” the […]
18 hours ago
Skateboarders skate in front of city hall in remembrance of Tyre Nichols, who died after being beat...
Associated Press

Tony Hawk to donate photo proceeds to Tyre Nichols fund

NASHVILLE, Tenn. (AP) — Skateboard legend Tony Hawk says he will donate half of the proceeds of autographed photos of himself and BMX rider Rick Throne to the memorial fund for Tyre Nichols. “My proceeds from these will go to the Tyre Nichols Memorial Fund, which includes plans to build a public skatepark in his […]
18 hours ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Nordstrom cuts outlook as bad news piles up for retailers