Nordstrom sales come up short, echoing broader retail industry pressures

Shoppers exit Nordstrom at the King of Prussia Mall on December 11, 2022 in King of Prussia, Pennsylvania.

Nordstrom on Tuesday said sales slid by nearly 7% year over year, echoing other retailers' comments about weaker demand and budget-pressured consumers.

Yet the department store operator reiterated its full-year sales outlook, saying it expects revenue to decline by between 4% and 6% versus a year ago, including retail sales and credit card revenues.

It narrowed its adjusted earnings per share forecast, saying it anticipates $1.90 to $2.10, excluding the impact of winding down its stores and online business in Canada and any potential share buybacks.

Here's how the retailer did in the fiscal third quarter compared with what analysts were anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:

In the three-month period that ended Oct. 28, Nordstrom's net income rose to $67 million, or 41 cents per share, compared to a loss of $20 million, or 13 cents, in the year-ago quarter. The company had an impairment charge related to supply chain technology and related assets in the year-ago quarter.

Nordstrom is looking for growth after three straight years of sales that have been at or below pre-pandemic levels. The higher-end department store missed out on the dramatic sales gains that other retailers experienced during the Covid pandemic when consumers had extra cash and fewer ways to spend it during the pandemic.

As part of that push, the retailer has opened more of its off-price stores , Nordstrom Rack, and revamped merchandise in those stores to emphasize best-selling brands.