Investing.com - Retailers were nursing losses heading into the close, led by plunge in Nordstrom and Williams-Sonoma on concerns about soft quarterly earnings and guidance.
Nordstrom (NYSE:JWN) fell 14% after its quarterly results fell short on earnings, revenue and comps. The retailer grew comps 2.3% in the third quarter, below estimates for a 2.4% increase.
The retailer blamed the earnings miss on a non-recurring credit-card-related charge after disclosing that some cardholders with delinquent accounts were erroneously charged higher interest. Excluding that charge, Nordstrom actually beat profit expectations.
But there is little mercy for retail stocks lately, even those like Macy’s (NYSE:M) and Walmart (NYSE:WMT) that had strong results and guidance.
Williams-Sonoma Inc (NYSE:WSM) was punished for revealing a slowdown in comps and compressed margins in the third quarter, sending its shares down more than 11%.
The company recorded third-quarter earnings of $0.95 a share, $0.01 above analysts' estimate of $0.94. Revenue for the quarter came in at $1.36 billion, just below the consensus estimate of $1.37 billion.
RBC singled out slowing comps and compressed margins as headwinds for the company in the quarter, partly driven by delayed product receipts from Chinese port congestion.
Walmart added to losses from a day earlier, when its upbeat quarterly results were overshadowed by concerns over whether the retailer can sustain the pace of growth seen in quarter. Its shares fell 2%.