Nordstrom key Nov. revenue figure falls 1.1 pct
SEATTLE (AP) — Department store chain Nordstrom Inc. said Thursday that its November revenue at stores open at least a year fell 1.1 percent, hurt by a weak customer response to a key semi-annual sale in the first half of the month.
The results for the month ended Nov. 24 fell well short of Wall Street predictions. Analysts polled by Thomson Reuters expected an increase of 4.3 percent. Shares of the Seattle-based department store chain fell more than 1 percent in morning trading Thursday.
Nordstrom said sales fell in the first two weeks of the month as a result of a disappointing customer response to its half-yearly sale for women and kids. It added that its customers continue to prefer fashion and newness over bargains, which has made its clearance sales less enticing.
In addition, sales were hurt by store closures in the Northeast and Mid-Atlantic regions stemming from Superstorm Sandy.
Revenue at the company's namesake stores open at least a year fell 2 percent, while revenue at its Nordstrom Rack discount stores open at least a year rose 4.3 percent.
Total sales rose 1.8 percent to $926 million from $910 million.
Year-to-date revenue at stores open at least a year gained 6.7 percent, while total sales rose 10.4 percent to $9.09 billion.
As of Nov. 24, the company operated 240 Nordstrom, Nordstrom Rack and other stores, up from 225 at the same time last year.
Nordstrom shares fell 85 cents, or 1.5 percent, to $54.36 in premarket trading.