Nordstrom sees 2020 earnings largely below estimates, shares fall 9%

Business

FILE PHOTO: The company logo for Nordstrom Inc, is displayed on a screen at the New York Stock Exchange (NYSE) in New York, U.S., October 22, 2019. REUTERS/Brendan McDermid/File Photo

(Reuters) – Nordstrom Inc (JWN.N) forecast a 2020 profit largely below market expectations on Tuesday, after the upscale apparel retailer missed estimates for fourth-quarter revenue, sending its shares down 9% in after-market trading.

The Seattle-based company has been struggling to attract shoppers at a time when they increasingly prefer retailers with a strong online presence such as Walmart Inc (WMT.N) and Target Corp (TGT.N), as well as Amazon.com Inc (AMZN.O).

Nordstrom expects to earn $3.25 to $3.50 per share in fiscal 2020, compared with analysts’ estimates of $3.49 per share, according to IBES data from Refinitiv.

The company said the forecast does not include any impact from the coronavirus outbreak.

Net earnings fell to $193 million, or $1.23 per share, in the three months ended Feb. 1, from $248 million, or $1.48 per share, a year earlier.

The reported quarter included a 19 cents per share charge related to the integration of Trunk Club stores and debt refinancing costs.

Total revenue rose to $4.54 billion from $4.48 billion, but fell short of estimates of $4.56 billion.

The company also said Erik Nordstrom would be its sole chief executive officer, as it moves away from its co-president structure.

Reporting by Praveen Paramasivam in Bengaluru and Melissa Fares in New York; Editing by Shounak Dasgupta

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