Nordstrom reported ugly third-quarter earnings results on Thursday, and the stock got wrecked.
Shares fell by as much as 16% in after-hours trading.
The upscale retailer reported earnings per share of $0.42, missing Bloomberg's consensus estimate of $0.72. The company said this reflected transaction costs related to the $2.2 billion-sale of its credit card portfolio to TD Bank in October.
Sales rose 6% in the third quarter, to $3.3 billion.
Comparable sales, at stores open for at least one year, rose 0.9%, missing the forecast for growth of 3.6%.
And so, we have yet another retailer reporting disappointing results. Macy's, America's largest department store company, reported sales below expectations with a lower outlook for the fourth quarter on Wednesday.
As Macy's shares plunged after the earnings results, Nordstrom and Kohl's shares also fell. Apparel retailers are facing a warmer-than-usual holiday season, meaning that fall-season clothes may not sell as early as before, according to analysts.
And, foot traffic to malls has been on the decline.
Nordstrom lowered its outlook, and now sees full-year sales rising between 7.5% to 8%, from a previously guided range of 8.5% to 9.5%.
Here's a chart showing the drop in shares on Thursday:
