Nordstrom Inc. shares have slipped into the red in after-hours trading after the firm’s third-quarter sales missed expectations as a result of several natural disasters during the period.
As of 4:45 p.m. ET, Nordstrom shares were down nearly 3 percent to $40.03.
The department store posted Q3 sales of $3.5 billion, an improvement of 2 percent over the previous same-period, but just below forecasts for sales of $3.6 billion. Comparable sales fell 0.9 percent, while analysts had expected a comp decline of 0.3 percent.
Nordstrom — which has been a Wall Street favorite throughout much of retail’s rough patch, largely bucking negative trends — said its results were affected by hurricanes Irma, Harvey and Maria that hit Puerto Rico, Florida and Texas during the period. Specifically, earnings per share absorbed a 4 cents reduction while the estimated lost sales impact from the hurricanes was $20 million, or 60 basis points.
Nevertheless, the company reversed its losses — which were $10 million in the comparable period — and posted a profit of $114 million, or 67 cents per diluted share. Those results topped forecasts for diluted earnings per share of 64 cents.
By segment, sales at Nordstrom stores, including U.S. and Canada full-line stores and Nordstrom.com — combined with Trunk Club — decreased 1.2 percent and comparable sales decreased 1.9 percent. The top-ranking merchandise categories were men’s apparel and kids’ apparel.
In the Nordstrom Rack brand, which consists of Nordstrom Rack stores and Nordstromrack.com/HauteLook, net sales increased 5.5 percent and comparable sales increased 0.8 percent.
Looking ahead, Nordstrom maintained its revenue outlook for the year but lowered its EPS forecast to incorporate its Q3 results. Diluted EPS are now expected in the range of $2.85 to $2.95, compared with the prior range of $2.85 and $3.00.