The slowing sales trends seen by Nordstrom in late October could indicate “that the holiday outlook is not great,” said Morningstar analyst David Swartz. — Reuters
NEW YORK: Nordstrom slightly raised its annual comparable sales forecast on Tuesday due to softness in some categories including footwear and apparel toward the end of last month.
Shares of the company, which surged about 33% so far this year, fell 1% in extended trading.
“While we continue to be pleased with our year-to-date results, the external environment remains uncertain,” chief financial officer Cathy Smith said in prepared remarks.
At the end of the third quarter, inventory grew 6%, outpacing sales growth of 5%.
The increase was partly due to slower sales in seasonal categories like boots, sweaters and outerwear in certain regions, said the company’s president Pete Nordstrom, adding that it has curated sweaters and luxury fragrances for holidays.
The slowing sales trends seen by Nordstrom in late October could indicate “that the holiday outlook is not great,” said Morningstar analyst David Swartz.
However, the company beat third-quarter revenue and profit estimates on the back of popular brands including On Running, Hoka and Vuori.
Nordstrom’s addition of sought-after brands, along with its focus on digital growth and expanding stores of its off-price brand Rack, has boosted sales ahead of a potentially mixed holiday season. — Reuters
