Nordstrom earnings top expectations, retailer says it's winding down Canada operations

Nordstrom connected Thursday reported little income and profits for the vacation quarter, though net topped Wall Street's expectations.

The institution said it expects income to diminution successful the caller fiscal year, reflecting successful portion its determination to upwind down its Canadian operations.

"We entered Canada successful 2014 with a program to physique and prolong a semipermanent concern there. Despite our champion efforts, we bash not spot a realistic way to profitability for the Canadian business," CEO Erik Nordstrom said successful a merchandise Thursday.

Here's what the section store reported for the fiscal fourth-quarter compared with what analysts were anticipating, based connected Refinitiv estimates:

• Earnings per share: 74 cents vs. 66 cents expected
• Revenue: $4.32 cardinal vs. $4.34 cardinal expected

Nordstrom has struggled with slower sales, much markdowns and scrutiny from a salient activistic investor. Its nett income successful the play ended Jan. 28 fell to $119 million, oregon 74 cents per share, from $200 million, oregon $1.23 per share, a twelvemonth earlier.

For the caller fiscal year, Nordstrom expects gross to autumn 4% to 6%, including a antagonistic interaction from Canadian store closures and a affirmative interaction from a 53rd week. It besides projected EPS of 20 cents to 80 cents for the year, which besides includes imaginable effects from the Canadian wind-down.

Even earlier Nordstrom reported earnings, it chopped its forecast and told investors that it had a unsmooth holiday. In January, the section store concatenation said its nett income dropped 3.5% for the nine-week play that ended Dec. 31 compared with the year-ago period. Its nett income declined sharply during that agelong astatine its off-price banner, Nordstrom Rack.

One of the reasons for disappointing sales? More markdowns. Nordstrom said it discounted merchandise much than expected successful November and December, truthful it could commencement the fiscal twelvemonth with a healthier level of inventory.

The institution drew attraction and saw its banal soar successful February, arsenic activistic capitalist Ryan Cohen bought a ample involvement successful the company. Cohen, the president of GameStop and laminitis of Chewy, is funny successful utilizing that presumption to propulsion for alteration — including getting erstwhile Bed Bath & Beyond CEO Mark Tritton disconnected of Nordstrom's board.

Cohen bought, and aboriginal sold, a large involvement successful Bed Bath, aft criticizing Tritton's strategy and pushing for alteration astatine that company, too.

As of Thursday's close, Nordstrom shares are up much than 19% this year.

Read the afloat Nordstrom net release.