© Reuters. FILE PHOTO: The company logo for Nordstrom Inc, is displayed on a screen at the New York Stock Exchange (NYSE) in New York, U.S., October 22, 2019. REUTERS/Brendan McDermid
(Reuters) -Nordstrom Inc on Thursday cut its forecast for annual profit after reporting weak holiday sales, as the department store chain took a hit from heavy discounting and promotions.
Shares of the company fell about 6% to $16.41 in extended trading, after it said net sales declined 3.5% for the nine-week holiday period ended Dec. 31.
It also forecast annual revenue growth at the low-end of its previously issued outlook of 5% to 7%.
“The holiday season was highly promotional, and sales were softer than pre-pandemic levels,” Chief Executive Officer Erik Nordstrom (NYSE:) said in a statement.
“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.”
The company said it now expects adjusted earnings per share of $1.50 to $1.70 for fiscal 2022, compared with its prior outlook of $2.30 to $2.60.
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