SEATTLE (AP) — Nordstrom Inc. said Thursday its first-quarter net income fell 3 percent, hurt by weak demand for spring merchandise and softer performance in the Northeast and Midwest.
The results were below Wall Street estimates, a rare miss for the luxury retailer given that higher-end spenders have generally kept shopping in the lackluster economy. The company's stock fell more than 3 percent in aftermarket trading.
Nordstrom said it had lower sales trends in seasonal products, as well as in the Northeast, Mid-Atlantic and the Midwest during the first two months of the year. Results improved in April. Lower-than-planned sales were offset by tightened control over inventory and expenses.
The Seattle-based retailer said net income fell to $145 million, or 73 cents per share. That compares with net income of $149 million, or 70 cents per share a year ago. Analysts expected net income of 76 cents per share.
Revenue rose 5 percent to $2.75 billion. Analysts expected $2.81 billion.
Revenue in stores open at least one year rose 2.7 percent. The measure is a key gauge of a retailer's financial health because it excludes stores that have opened or closed during the year.
Top performing categories included makeup, women's clothing and purses.
The company now expects full-year sales to rise 4 to 6 percent from a prior range of 4.5 to 6.5 percent. That implies revenue of $12.63 billion to $12.89 billion. Analysts expect $12.85 billion.
It reiterated full-year net-income guidance of $3.65 to $3.80 per share, however. Analysts expect $3.80 per share.
The company issued its results after the close of trading on Wall Street and its stock fell $1.98 to $59.15 in aftermarket dealings. It had ended the regular trading session day down 31 cents at $61.13. That's still near the high end of the stock's 52-week range of $46.27 to $61.81.