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May 11, 2017

Nordstrom quarterly sales fall, shares down

Nordstrom

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Nordstrom Inc (JWN.N) reported weaker-than-expected quarterly same-store sales as fewer people visited the apparel retailer's stores in the United States, sending its shares down 3.7 per cent after the bell.

Rivals Kohl's Corp (KSS.N) and Macy's Inc (M.N) also posted bigger-than-expected declines in quarterly sales earlier on Thursday, underscoring department store operators' struggles amid sluggish demand for discretionary items like apparel and an inability to retain shoppers who are moving online.

Nordstrom reported a 0.8-per-cent decline in its comparable-store sales for the first quarter ended April 29, compared with flat sales expected by analysts polled by research firm Consensus Metrix.

The company's net income rose to US$63 million, or 37 cents US per share, from US$46 million, or 26 cents US per share, a year earlier.

Nordstrom's net sales rose 2.7 per cent to US$3.28 billion, helped by strong demand at its off-price stores, Nordstrom Rack, and its website.