Nordstrom's (JWN) stock slid 29% on Wednesday, its biggest one-day decline on record. The plunge came after the clothing department store missed quarterly earnings expectations, challenged by low inventory and rising costs.
The company's profit of 39 cents per share for its third quarter came in below Wall Street consensus estimates of 55 cents. Nordstrom's sales increased 18% year-over-year to $3.53 billion.
The company's discount store business, Nordstrom Rack, fared particularly poorly during the quarter.
"Nordstrom Rack has been challenged by low inventory levels in premium brands and key categories such as women's apparel and shoes," CEO Erik Nordstrom said during an earnings call with analysts on Tuesday, later adding: "While we've seen significant macro-related pressure in fulfillment and labor costs, we're concentrated on mitigating our overall impact from those pressures. Improving our supply chain and inventory flow is also a priority."
Clothing retailers' stocks have been punished this week amid quarterly results that were impacted by supply chain disruptions and rising costs.
Gap (GPS) shares tanked 24% on Tuesday after the bell, its biggest daily drop on record. The clothing retailer missed on quarterly results and lowered its guidance because of significant supply chain issues.
On Tuesday Urban Outfitters (URBN) shares were down as much as 14% following its quarterly results. Abercrombie and Fitch's (ANF) stock had its biggest decline since March 2020 after highlighting production and delivery delays.
Nordstrom shares were up 2% year-to-date prior to Wednesday's session.