SEATTLE (AP) — Nordstrom's markdowns during the holiday shopping season and costs to grow its Nordstrom Rack chain weighed on its profit during its holiday quarter.
The high-end retailer's earnings outlook for this year was also short of Wall Street predictions. The Seattle-based chain said that expenses from its plans to open stores in Canada, grow its Nordstrom Rack chain and its technology investments would weigh on profit growth.
For the three months through Feb. 1, net income slipped nearly 6 percent, to $268 million, or $1.37 per share, from $284 million, or $1.40 per share, in its fiscal fourth quarter the year before. Its revenue rose less than 1 percent, to $3.71 billion.
Nordstrom's profit exceeded market forecasts of $1.34 per share, but revenue fell short of the $3.73 billion analysts polled by FactSet anticipated.
Slow spending over the holidays has hurt many retailers. Nordstrom was the latest to say that it increased markdowns because of the increased promotions this November and December. It is also expanding its lower-cost Nordstrom Rack chain. Costs from that effort weighed on profitability.