UPDATE 1-Nordstrom first quarter results disappoint, cuts 2019 forecast

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


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