Nordstrom shares sink after retailer posts weak holiday sales

Shares of Nordstrom fell Thursday, after the department store chain said it was hurt by weak sales and a lot of markdowns during the holiday season.

The retailer said net sales dropped 3.5% for the nine-week holiday period that ended Dec. 31 compared with the year-ago period. Net sales decreased 1.7% for its namesake banner and 7.6% for its off-price banner, Nordstrom Rack.

In a news release, Nordstrom said it had to mark down merchandise more than expected to clear through excess inventory. Plus, the company said, shoppers did not spend as freely as in previous holiday seasons.

“While we continue to see greater resilience in our higher income cohorts, it is clear that consumers are being more selective with their spending given the broader macro environment,” CEO Erik Nordstrom said in a news release.

While deeper discounts hurt profits, he said Nordstrom will “enter 2023 in a stronger position as we prioritized starting the new fiscal year with clean inventory levels.”

This is a breaking news story. Please check back for updates.