Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Nordstrom revenue stuck behind pre-pandemic levels, shares drop

Stock MarketsAug 24, 2021 06:06PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
2/2 © Reuters. Blouses with bold florals are displayed at Nordstrom in the Manhattan borough of New York City, New York, U.S., March 30, 2021. REUTERS/Caitlin Ochs 2/2

(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.

Nordstrom revenue stuck behind pre-pandemic levels, shares drop

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email