Why Nordstrom Stock Dropped Today

Shares of Nordstrom (NYSE: JWN) fell 16.1% on Wednesday after the department-store chain announced better-than-expected quarterly results but followed with underwhelming forward guidance.

For its fiscal fourth quarter ended Feb. 3, 2024, Nordstrom's net sales grew 2.2% year over year to $4.293 billion, translating to adjusted (non-GAAP) net income of $0.96 per share. Most analysts were only modeling earnings of $0.89 per share on revenue closer to $4.38 billion.

Management noted the company's active, beauty, and women's apparel segments had the strongest growth during the quarter on a year-over-year basis. Growth was particularly strong at Nordstrom Rack, the company's off-price brand, where net sales increased 14.6% year over year (or 8.8% excluding an extra week in the quarter, compared to the same year-ago period).

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Source Fool.com