Nordstrom Profit Falls; Forecast Lowered

Nordstrom Inc. reported a 25% decline in profit for its fiscal first quarter to $24.8 million, or 18 cents a share, and lowered its forecasts for the second quarter and full year. In the first quarter, sales rose 5.6% to $1.22 billion, but sales at stores open at least a year fell 3.3%. Nordstrom said an increase in costs wasn’t as severe as it expected, helping results beat the 14-cent average forecast of analysts.

In the second quarter, the retailer said same-store sales will be unchanged or lower, resulting in earnings of 28 cents to 31 cents a share. That would trail the 35-cent average estimate of analysts polled by First Call/Thomson Financial. For the year, Seattle-based Nordstrom expects earnings of 97 cents to $1.10 a share, rather than its earlier forecast of $1.10 to $1.14, with same-store sales down by a percentage in the low-single digits.

Nordstrom shares fell in after-hours trading to $18. The stock had closed at $20.50, up 70 cents, on the New York Stock Exchange before the results were released.