May 16 (Bloomberg) -- Nordstrom Inc. dropped after the department-store chain posted first-quarter revenue that trailed analysts’ estimates and cut its sales forecast for the year.
Nordstrom fell 2.7 percent to $59.45 at 4:42 p.m. after regular trading ended in New York. The shares had gained 14 percent this year before today’s close, compared with a 16 percent advance for the Standard & Poor’s 500 Index.
Revenue increased 4.7 percent to $2.75 billion, the company said today in a statement. Analysts had estimated $2.81 billion on average. Sales at stores open at least a year will rise 5 percent at the most in the current fiscal, Nordstrom said. In February, it projected a maximum of 5.5 percent.
Nordstrom, which has more than 100 namesake stores, suffered “particularly soft” sales in the first two months of the quarter in seasonal merchandise and geographically in the Northeast, Mid-Atlantic and Midwest regions, the Seattle-based retailer said. Overall sales trends showed improvement in April, it said.
Net income in the first quarter ended May 4 dropped 2.7 percent to $145 million, or 73 cents a share, from $149 million, or 70 cents, a year earlier, Nordstrom said. Analysts projected 76 cents, the average of 24 estimates compiled by Bloomberg.
Earnings per share in 2013 will be $3.65 to $3.80, the retailer reaffirmed, helped by 5 cents by share repurchases. Analysts projected $3.80, the average of estimates compiled by Bloomberg.
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