Nordstrom CEO Notes ‘Noticeable Decline’ in Sales Trends

Department-store chain Nordstrom (JWN) on Tuesday boosted the low end of its full-year projections, although it warned that there was a “noticeable decline” in sales trends at the end of last month.

The retailer, which is weighing a plan by its founding family to take it private, also reported higher-than-estimated third-quarter results. 

“While we are excited about and well-prepared for the holiday season, there was a noticeable decline in sales trends towards the end of October,” Chief Executive Officer (CEO) Erik Nordstrom said in the company’s earnings call, a transcript of which was made available by Alpha Sense. 

Nordstrom posted a modest gain in third-quarter revenue to $3.46 billion and net income of $46 million, down from $67 million in the same period previously. The results beat revenue projections of $3.35 billion and net income of $33.9 million, according to consensus estimates from analysts polled by Visible Alpha. 

Nordstrom Lifts the Lower Level in Its Outlook Range

The department store operator also raised the low end of its projections for growth for the full year.

“Our actions throughout this year have led to this moment, and we feel well-positioned for a successful holiday season and look forward to helping our customers celebrate the moments that matter,” Pete Nordstrom, the company’s president, said in a statement.

Nordstrom said its full-year comparable store sales would be in a range of 1% to 2%, versus the flat to 2% growth range it announced in August. Full-year revenue is projected within a range of flat to up 1%, versus 1% decline to 1% growth previously. 

Nordstrom shares are falling 0.6% in premarket trading but are up by a third this year.