Latest Nordstrom report shows retailer is struggling
Nordstrom has been Seattle's flagship retailer for decades. But the latest earnings report shows the company is struggling.
The stock slid in after-hours trading after the company reported its quarterly sales had declined, and its profits had fallen by half.
Nordstrom said it expected sales to soften, but not by this much. Its full-price department stores were the hardest hit, with a decline of 5% in the last quarter, followed by declines at Nordstrom Rack.
The company said it needed to "re-balance" the merchandise mix to better serve customers.
Nordstrom said a third of its business is now online. But the company said its digital marketing and customer loyalty efforts also flopped. The company faces its shareholders at its annual meeting later this week.
It will be the first annual shareholder meeting since the death of top executive Blake Nordstrom in January. His brothers, Erik and Pete Nordstrom, now head the company.
Other major retailers are also reporting a dismal spring, with customers spending less and going to fewer stores.