FILE PHOTO: The Nordstrom store is pictured in Broomfield, Colorado, February 23, 2017. REUTERS/Rick Wilking/File Photo
(Reuters) – Nordstrom Inc on Tuesday cut its forecast for full-year sales and profit after reporting lackluster first-quarter results, blaming softer trends and “executional issues” related to its loyalty program, sending its shares down nearly 9%.
The retailer, which sells everything from apparel and footwear to home decor, struggled to attract customers at both its full-price and off-price stores and said trends from the fourth quarter continued into the first quarter.
“We had executional misses with our customers,” the company’s co-president Erik Nordstrom said.
It now expects 2019 net sales between a 2% fall to flat growth, compared with its previous projection of 1% to 2% rise.
The company expects 2019 profit between $3.25 per share and $3.65 per share, compared with its prior forecast of $3.65 per share to $3.90 per share.
Nordstrom is struggling to increase footfall at its stores as consumers shift toward fast-fashion brands and online outlets.
Total revenue for the first quarter, ended May 4, fell 3.3 percent to $3.44 billion, falling short of analysts’ estimates of $3.58 billion, according to IBES Refinitiv data.
Nordstrom earned 23 cents per share in the quarter, falling short of analysts’ estimates by 20 cents.
Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber