Nordstrom Cuts Full Year Forecast as Retail Sales Slowdown
On Thursday, Seattle based Nordstrom Inc, the department store trimmed its full-year forecast. That raises concerns about the slowdown in the retail sector which was also felt when Macy's Inc. also cut its expectations.
On Wednesday, Macy's attributed the weaker results to long lasting warm weather, and lower spending by tourists which is leading to larger pileup of unsold inventory. During September and October sales were affected by the long spell of warm weather which lowered demands for jackets and coats and other cold weather apparels.
An analyst with research firm Conlumino, Carter Harrison said "Warmer weather during the quarter was extremely unhelpful to sales of fall and winter apparel."
Nordstrom, the American upscale fashion retailers shares dropped 20.5 percent to $50.46 during the after-hours trading touching the lowest since March 2013. However, Nordstrom did mention any specific reason for the unsatisfactory results which lead to lowering its forecast.
Inventory also piled up at Nordstrom increasing eight percent in the third quarter which ended on October 31.
Not all retailers are sailing in the same boat, Kohl's Corp, the retail departmental chain store earlier reported better-than-expected quarterly profits attributed to strong back-to-school sales.
New Zealand News
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