Nordstrom shares’ decline was driven by its own lackluster results, the much worse numbers from other big retailers, and a Commerce Department report showing general retailers’ April sales declined 0.5 percent even as online sales rose a robust 1.4 percent.
Nordstrom shares closed down nearly 11 percent Friday, cementing a two-day decline of nearly 18 percent, driven by its own lackluster results, the much worse numbers from other big retailers, and a Commerce Department report showing general retailers’ April sales declined 0.5 percent even as online sales rose a robust 1.4 percent.
Nordstrom’s shares had already fallen 7.6 percent during the day Thursday, battered by the results from other department stores earlier in the day. Its first-quarter earnings report showed comparable sales — sales at stores open at least a year — down 0.8 percent companywide.
Despite its overall sales and profit beating Wall Street expectations, comparable sales at Nordstrom’s full-line stores fell for a seventh straight quarter, while such sales at Nordstrom Rack fell by less than 1 percent and its e-commerce sites showed double digit growth.
Those results left some Wall Street analysts pessimistic about Nordstrom’s prospects.
“Deteriorating store comps and revenue shift to the higher variable cost eCommerce channel could make it difficult for JWN [Nordstrom] to ever grow earnings again,” Kimberly Greenberger, a Morgan Stanley equity analyst, wrote in a research note to investors Friday.
Others were more positive. Michael Binetti, analyst with UBS Investment Bank, wrote Friday that the sell-off of Nordstrom shares was “overblown, given the relative strength” of its quarterly results.
JCPenney shares closed down nearly 14 percent Friday after reporting falling sales for the quarter earlier in the day. Macy’s, Kohl’s, and Dillard’s shares closed down about 2 to 3 percent Friday after big drops Thursday following dismal earnings reports.
Those falling sales are in line with a Commerce Department report Friday showing that while overall retail sales increased 0.4 percent in April from March, the increased spending was in categories including autos, electronics, appliances, and health care and sporting goods.
Sales fell at clothing merchants, department stores, general retailers such as Wal-Mart, and grocery stores.
The 1.4 percent growth for online retailers was the strongest of any group.