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Shares of department store giant Nordstrom JWN plunged 17.6% in Wednesday’s trading session despite reporting an impressive beat-and-raise second quarter. Earnings came in at $0.49 per share, while sales surged 101% to $3.34 billion thanks to strong demand at the company’s annual Anniversary sale. However, Nordstrom’s top line fell 6% compared to Q2 2019.
Nordstrom Rack sales were up 61% year-over-year and online sales rose 30%, representing 40% of the company’s total business. Looking ahead, Nordstrom now expects revenue growth of more than 35% for the current fiscal year, up from the previous outlook of 25+% growth.
JWN has gained in recent days as peers like Macy’s M and Kohl’s KSS reported much better-than-expected second-quarter earnings. But some think that because of this robust showing from other department stores, expectations for Nordstrom spiked, and its undoubtedly great report ended up disappointing Wall Street.
JWN is now flat year-to-date.
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