BLACK & CO. SHAVES FORECAST ON NORDSTROM’S 4TH QUARTER
NEW YORK — Citing slow holiday sales and continued gross margin pressure, Black & Co. trimmed its fourth-quarter estimate on Nordstrom Inc. by five cents to 75 cents a share.
The Seattle-based retailer earned 85 cents in the year-ago quarter.
That reduction brings the full year estimate on Nordstrom to $2.10 a share, which compares with $2.47 a year earlier. Black & Co., an investment firm in Portland, Ore., also cut Nordstrom’s 1996 estimate by 21 cents to $2.67.
Analyst Jennifer Black Groves said harsh winter weather in the Northeast and Northwest hurt holiday sales and that Nordstrom’s gross margin pressure has been mounting “primarily due to buying an occupancy costs.”
“In addition, the shortfall in holiday sales has more and more retailers using promotions to drive sales, creating a very difficult pricing environment,” Groves said.
However, the firm kept a “buy” rating on the stock, noting that Nordstrom has done a good job keeping inventory in line with sales.