NEW YORK (AP) — Nordstrom on Thursday joined the ranks of major retailers cutting their profit outlooks for the year, citing disappointing sales from its more affluent shoppers.
The bleaker forecast from the department store operator came despite a higher profit for the second quarter, which got a boost from the chain's Annual Sale.
Its stock fell 3.3 percent to $57.40 in after-hours trading Thursday.
Macy's Inc. and Wal-Mart Stores Inc., the world's biggest retailer, also cut their outlooks for the year in reporting their quarterly results. But Nordstrom's move raises concerns about more affluent consumers, whose spending has been rebounding since the recession.
The company, based in Seattle, is considered a barometer of luxury spending and growth in the sector is seen as a good sign for the economic recovery. But its shoppers apparently weren't immune to the pressures being felt in the broader economy.
Nordstrom is also grappling with new demands from shoppers armed with smartphones. That's pushing the department store, considered the gold standard in customer service, to make changes such as offering free shipping for online orders. Additionally, the company is looking for growth beyond the U.S. and is heading to Canada starting next year.