Nordstrom stock sinks as CEO calls out consumer strain
Nordstrom (NYSE:JWN) stock slid sharply on Tuesday after CEO Erik Nordstrom said that the holiday sales environment remains challenging.
Speaking at the Morgan Stanley Consumer & Retail Conference, he said the retailer is seeing “signs of strain across all customer cohorts” at the moment and noted that the overall health of holiday shopping will very much depend on the activity in the weeks remaining before Christmas. Nordstrom added that a highly promotional environment is also impacting dynamics for retailers like the one he helms.
Shares of the Seattle-based apparel retailer slipped over 5% shortly after the comments, erasing a modest gain and trending into the red. The stock marked a 3.86% loss by the close of his remarks.
To be sure, Nordstrom noted that the holiday sales season is somewhat augmented in 2022, with Hannukah falling later than usual in the season and an extra weekend day of shopping preceding the Christmas holiday. Therefore, consumers are expected to bargain hunt later into the season, potentially backloading sales.
Read more on Black Friday sales results for department stores.