Nordstrom (NYSE:JWN) stock is falling hard on Wednesday after the retailer released results for its second quarter of 2022.
The most major news is a massive cut to the company’s guidance for the full year. Nordstrom now expects adjusted earnings per share (EPS) to range from $2.30 to $2.60. For comparison, its prior outlook was adjusted EPS between $3.20 to $3.50. This new guidance will also have it missing Wall Street’s estimate of $3.05 per share.
In addition to that, the company now expects revenue growth for the year to range from 5% to 7%. That’s a slight decrease compared to its previous revenue growth guidance of 6% to 8% for fiscal 2022.
Guidance Was Cut Even With Q2 Beats
Despite the reduced outlook, adjusted EPS and revenue for Q2 came in at 81 cents and $4.1 billion. Those figures both beat out Wall Street’s estimates of 80 cents per share on revenue of $3.97 billion and are also up year-over-year (YOY) increases.
CEO Erik Nordstrom said the following about the results:
“While our quarterly results were consistent with our previous outlook, customer traffic and demand decelerated significantly beginning in late June, predominantly at Nordstrom Rack. We are adjusting our plans and taking action to navigate this dynamic in the short term, including aligning inventory and expenses to recent trends, and we remain confident in our ability to deliver on our long-term strategic and financial goals.”
Heavy trading follows today’s earnings report with some 14 million shares on the move. For comparison, the company’s daily average trading volume is closer to 5 million shares.
JWN stock is down 19% as of Wednesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.