Shares for Nordstrom Inc. are down more than 8% in Tuesday after-hours trading as the retailer posted disappointing fourth-quarter results and announced changes to its executive ranks.
For the period ended Feb. 1, the department store logged earnings per share of $1.23 — a wide miss from analyst bets of $1.47 — on profits of $193 million. Revenues, which climbed 1.3% to $4.54 billion, also missed expectations of $4.56 billion.
What’s more, the Seattle-based firm retired its co-presidency structure, naming Erik Nordstrom as its sole CEO and Pete Nordstrom as president and chief brand officer. Both brothers will remain on the board of directors.
“These titles help clarify our respective roles, as we strive to maximize our impact both as individual leaders and as a team,” Erik Nordstrom said in a statement. “Pete and I continue to be partners in ensuring Nordstrom’s success, and we are both focused on executing our long-term plan.”
For the full year, Nordstrom predicts revenues to improve between 1.5% and 2.5% and EPS in the range of $3.25 to $3.50. Its guidance did not include any potential impact from the coronavirus outbreak.
“As we move forward, we are further leveraging digital capabilities and scaling our market strategy to drive sales and earnings growth,” Erik Nordstrom said. “The momentum from our investments and market strategy is enabling us to get closer to customers, transforming the way we’re serving them.”
Amid a rapidly changing retail landscape characterized by widespread store closures and e-commerce growth, Nordstrom has arguably managed to stay ahead of many of its competitors. The retailer has often been lauded for its innovative concepts and omnichannel savvy, including its pioneering of the buy online, pick up in store service, revamped loyalty program and experiential store offerings. It has also expanded its brick-and-mortar footprint — a selling channel that, in the past few years, has been struggling to cope with the shift to e-commerce — with the October 2019 launch of its 320,000-square-foot women’s flagship in New York City.
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