By Yasin Ebrahim
Investing.com - Department store chain Nordstrom (NYSE:JWN) fell on Tuesday as fourth-quarter earnings and sales fell short of analysts’ estimates. The company announced a board shakeup, scrapping its co-president structure to appoint Erik Nordstrom as a sole chief executive officer, and shrinking the maximum size of its board of directors to 10 people from 11.
Nordstrom (NYSE:JWN) fell 7% in extended trading hours.
The company reported fourth-quarter earnings of $1.42 a share on revenue of $4.54 billion, below consensus estimates for earnings of $1.47 a share on revenue of $4.56 billion.
Growth was held back by higher costs from the growth of its loyalty program and planned occupancy costs related to the NYC flagship store, the company said.
Looking ahead, the company said it expected sales to increase by 1.5% to 2.5% in 2020, with earnings expected within a range of $3.25 to $3.50.
"(W)e drove improvement in sales trends in Full-Price and Off-Price, and we increased profitability during the second half of the year. Our 2019 results reflected the accelerated roll out of our market strategy, our strength of Nordstrom (NYSE:JWN) Rack’s execution, improved merchandise margins and realized expense savings that were 10 percent above our plan,” Erik Nordstrom said in a statement.