The company had a trading volume of 5,945,868 shares. Finally, Credit Suisse reduced their target price on Nordstrom from $76.00 to $75.00 and set a neutral rating on the stock in a report on Monday, October 12th.
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The Seattle-based company blamed “softer sales trends”, across all categories of merchandise, for a third-quarter performance that was “below company expectations”.
“We are disappointed that the pace of sales did not improve in the third quarter, as we had expected”, Lundgren said.
Net income fell 15.5 percent to $120 million, or 63 cents per share, in the quarter ended October 31.
In Q1, market watchers had shrugged of profit declines at the department store chain as the consequences of the company’s strategic investments and acquisitions.
However, Kohl’s warned that warmer-than-usual weather could dent current-quarter results, but maintained that it would meet the low end of its $4.40-$4.60 per share profit forecast for the year ending January.
Nordstrom also lowered its full-year outlook to predict earnings in the range of $3.30 to $3.40 per share, down from a range of $3.85 to $3.95 a share. Investors of record on Monday, October 12th were issued a dividend of $4.85 per share.
The upscale department store operator delivered earnings of 57 cents per share on $3.33 billion in revenue. The ex-dividend date of this dividend was Wednesday, October 7th.
“We are wary of a drop in traffic but remain confident of the measures management is taking to fix a few of its core problems”, said Efrain Levy, equity analyst at S&P Capital IQ who reiterated his “hold” rating on the stock. The company has a consensus rating of “Hold” and a consensus target price of $81.74.
Kohl’s reported a 5 percent rise in inventory units per store in the third quarter, despite placing fewer orders, due to the warm weather.
Nordstrom’s broad fashion spectrum, from the priciest designer apparel to more affordable clothing, would help it to clear inventories quicker than a few rivals, analysts said.
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Retail is a tough business. As of March 18, 2013, the Retail segment includes its 117 Nordstrom branded full-line stores and its online store at www.nordstrom.com, its 121 off-price Nordstrom Rack stores, one clearance store that operates under the name Last Chance and its other retail channels, including its online private sale subsidiary HauteLook, its two Jeffrey boutiques and one treasure&bond store.
