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Why Nordstrom Missed Its Earnings Mark Despite the Retail Rebound

Nordstrom’s stock took a hit in after-hours trading on Thursday after the retailer’s third-quarter earnings came in well below analyst expectations.
The department store chain reported earnings per share of $0.39 versus the $0.66 forecast by Wall Street, a gap caused largely by a one-time charge of $72 million paid to customers that were erroneously charged higher interest rates on delinquent store card accounts. The payout dragged net income down 42 percent to $67 million during the quarter ended Nov. 3, compared with $114 million during the same period last year. (Without the charge, which accounted for a $0.28 hit on the quarter’s earnings, Nordstrom would have topped expectations, the company’s co-president Blake Nordstrom said on a call with investors.)
When asked about the charge by an analyst on the call, CFO Anne Bramman emphasized that a relatively small number of accounts were affected. “It’s less than 4 percent of our cardholders, so I think you just have to understand the materiality of it,” she said. “Having said that, we certainly do not like having this happen with our customers and we are very sorry it took place.
The company’s numbers were also affected by accounting changes related to the timing of its

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Via:: https://footwearnews.com/2018/business/retail/nordstrom-q3-earnings-sales-profits-1202707588/