Nordstrom Profit Down, Cuts Outlook; Shares Plunge 12%

(RTTNews) - Shares of Nordstrom Inc. (JWN) plummeted 12 percent in extended hours on Thursday after the department store chain reported a poor results for its first quarter and lowered its full-year outlook.

Seattle-based Nordstrom's first-quarter profit plunged to $46 million or $0.26 per share from $128 million or $0.66 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.46 per share. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 0.9 percent to $3.25 billion from $3.22 billion last year. Analysts had a consensus revenue estimate of $3.28 billion. Comparable sales for the first quarter decreased 1.7 percent.

First-quarter gross margins dropped 164 basis points to 34.2 hurt largely by increased markdowns. Selling, general and administrative expenses, as a percentage of net sales, increased 149 basis points to 32.7 percent hurt largely due to higher credit chargebacks and severance charges.

Looking forward to the full year 2016, Nordstrom now expects earnings of $2.50 to $2.70 per share and net sales increase of 2.5 to 4.5 percent. Earlier, the company expected earnings of $3.10 to $3.35 per share and sales growth of 3.5 to 5.5 percent. Analysts currently estimate earnings of $3.20 per share on revenue growth of 3.4 percent.

JWN closed Thursday's trading at $45.23, down $0.20 or 0.44%, on the NYSE. The stock further dropped $5.63 or 12.27% in the after-hours trade.