CHICAGO (Bridge News) — Nordstrom Inc. said Wednesday that second-quarter profits fell 36 percent on tepid apparel sales, becoming the latest clothing retailer to report lower-than-expected results in recent months.
The upscale department-store chain also said it took a charge for the declining value of an investment in an online grocer.
Net income was $45.4 million, or 35 cents a share, compared to $70.8 million, or 51 cents, a year earlier, some 5 cents lower than the average estimate of analysts surveyed by First Call/Thomson Financial, though analysts trimmed estimates after a company profit warning on July 28. Previously, they expected earnings to be 12 cents to 16 cents higher.
Recent semiannual clearance sales and first-week totals at Nordstrom's Anniversary Sale were below expectations, the company warned last month.