Nordstrom Inc. shares fell in the extended session Tuesday, after the clothing-retail chain revealed a larger quarterly loss than expected.
reported a first-quarter loss of $166 million, or $1.05 a share, which was an improvement from a loss of $3.33 a share a year ago, when the company took a charge related to the COVID-19 pandemic. The retailer reported net revenue of $3.01 billion, up from $2.12 billion a year ago.
Analysts on average expected a loss of 62 cents a share on net sales of $2.9 billion, according to FactSet. Nordstrom noted in its release that the larger-than expected loss was mostly related to a redemption of debt — Nordstrom said that the debt-refinancing charge added 41 cents a share to the quarterly loss total.
Shares dove more than 5% in after-hours trading following the release of the results and were down 6% premarket Wednesday.
Nordstrom shares struggled early in the pandemic, but bounced back last fall after a surprise third-quarter profit led to optimism about Nordstrom’s potential for online sales. Executives are still focusing on digital efforts, while also pushing the more affordable Nordstrom Rack offering.
“We are encouraged by sales trends both in our stores and our digital business, supported by an improving consumer environment and strong execution,” Chief Executive Erik Nordstrom said in a statement. “Looking ahead to summer, we are well-positioned to continue to capitalize on pent-up demand, and are further strengthening our position as we execute on our strategy to win in our most important markets, broaden the reach of Nordstrom Rack and increase our digital velocity.”
Nordstrom shares have more than doubled in the past year, gaining 133% as the S&P 500 index
has increased 42%.