Nordstrom posts lower-than-expected quarterly same-store sales

Wall Street sign is shown in New York. Stocks are rising modestly in early morning trading Friday

Nordstrom's Sales Show It Can't Sidestep Department-Store Gloom

Net sales for the quarter declined 6.1 percent to $5.28 billion from $5.63 billion in the year-ago period and missed analysts' consensus estimate of $5.31 billion.

Nordstrom Inc. (JWN) shares fell more than 3% late Thursday after the retailer's comparable-store sales fell more than Wall Street expected, and sales were slightly below forecasts. The retailer recorded a drop of 0.9 percent, compared to the decline of 0.2 percent expected by Thomson Reuters.

Nordstrom, Inc. (NYSE:JWN) shares were riding higher today in tandem with Macy's (NYSE:M), whose stock jumped after the company posted better-than-expected earnings. Net sales fell 6.1% year over year, due in part to store closures.

Despite years-long efforts and billions in investments, department store chains Macy's and Kohl's continue to feel the brick-and-mortar squeeze in their quarterly earnings reports. On an owned basis, comparable sales declined by 4.0 percent.

Macy's reaffirmed its outlook for full-year comparable sales on an owned basis to decline between 2.2 percent and 3.3 percent, with comparable sales on an owned plus licensed basis to decline between 2.0 percent and 3.0 percent.

Macy's said its third-quarter profit, excluding the one-time charges, equaled 23 cents a share, up from 17 cents in the year-earlier quarter.

"A highlight of the third quarter was the launch of the new Star Rewards loyalty program - our best customers are responding positively", Gennette said. "Sales at Bloomingdale's were stronger than Macy's, particularly in the home category". He also said the company was encouraged by the potential of Backstage in Macy's stores, its in-store off-price format. The company also reduced its guidance for profit during fiscal 2017 to a maximum of $2.95 a share, down from the previous top level of $3 a share.

As of 4:45 p.m. ET, Nordstrom shares were down almost 3 percent to $40.03. The stock had fallen 16 percent this year through Thursday's close.

Clothing and home saw a 5.3% increase in full price sales, which the company attributes to lower prices and fewer promotions and clearance sales.

"At the same time, we're innovating with new smaller store concepts, rightsizing some of our stores with other retailers and piloting concepts like our initiative with Amazon", Mansell said.

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