Nordstrom Inc. shares fell in the after hours session on Tuesday, after the clothing retail chain revealed a quarterly loss larger than expected.
Nordstrom reported a first-quarter loss of $166 million, or $1.05 a share, which was an improvement from a loss of $3.33 a share a year ago, when the company took a charge related to the COVID-19 pandemic. The retailer reported net revenue of $3.01 billion, up from $2.12 billion a year ago.
Analysts on average expected a loss of 62 cents a share on net sales of $2.9 billion, according to FactSet. Nordstrom noted in its release that the larger than expected loss was mostly related to a redemption of debt, Nordstrom said that the debt-refinancing charge added 41 cents a share to the quarterly loss total.
Shares dove more than 5% in after-hours trading following the release of the results and were down 7% premarket Wednesday.
Nordstrom shares struggled early in the pandemic, but bounced back last fall after a surprise third-quarter profit led to optimism about Nordstrom’s potential for online sales. Executives are still focusing on digital efforts, while also pushing the more affordable Nordstrom Rack offering.
Nordstrom shares have more than doubled in the past year, gaining 133% as the S&P 500 index SPX, 0.28% has increased 42%.
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