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Nordstrom stock falls harder than ever before as supply-chain struggles hit high-end inventory
Home > Industries > Retail/Wholesale > The Ratings Game
The Ratings Game
Nordstrom stock falls harder than ever before as supply-chain struggles hit high-end inventory at Rack chain
Last Updated: Nov. 26, 2021 at 7:27 a.m. ET
First Published: Nov. 24, 2021 at 12:27 p.m. ET
By Tonya Garcia
Nordstrom Inc. has plans to turn around its off-price Rack banner, which is having problems finding merchandise from the premium brands that customers crave.
Shares of the luxury department-store retailer fell nearly 30% in Wednesday trading after reporting a third-quarter earnings miss. The 29.1% decline was easily the largest in the stock’s 49-year trading history, surpassing a 20.4% decline in March 2020, and erased nearly $1.5 billion in market capitalization. Nordstrom JWN, -1.10% shares fell to $22.26, their lowest close in almost exactly a year, since Nov. 20, 2020.
Supply-chain challenges are adding to the company’s problems, with low inventory levels in women’s clothing and shoes at Nordstrom Rack, but there’s more to it than that.
“While many retailers are dealing with macro-related supply-chain disruptions, Rack faces a unique challenge as off-price procurement of the same top brands we carry at Nordstrom is particularly difficult in an environment with production constraints and lower levels of clearance product,” said Erik Nordstrom, chief executive of the company, according to a FactSet transcript of the earnings conference call.
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}The Ratings Game
Nordstrom stock falls harder than ever before as supply-chain struggles hit high-end inventory at Rack chain
Last Updated: Nov. 26, 2021 at 7:27 a.m. ET
First Published: Nov. 24, 2021 at 12:27 p.m. ET
By Tonya Garcia
Nordstrom Inc. has plans to turn around its off-price Rack banner, which is having problems finding merchandise from the premium brands that customers crave.
Shares of the luxury department-store retailer fell nearly 30% in Wednesday trading after reporting a third-quarter earnings miss. The 29.1% decline was easily the largest in the stock’s 49-year trading history, surpassing a 20.4% decline in March 2020, and erased nearly $1.5 billion in market capitalization. Nordstrom JWN, -1.10% shares fell to $22.26, their lowest close in almost exactly a year, since Nov. 20, 2020.
Supply-chain challenges are adding to the company’s problems, with low inventory levels in women’s clothing and shoes at Nordstrom Rack, but there’s more to it than that.
“While many retailers are dealing with macro-related supply-chain disruptions, Rack faces a unique challenge as off-price procurement of the same top brands we carry at Nordstrom is particularly difficult in an environment with production constraints and lower levels of clearance product,” said Erik Nordstrom, chief executive of the company, according to a FactSet transcript of the earnings conference call.
{snip
