Feb. 21 (Bloomberg) -- Nordstrom Inc., the largest U.S. luxury department-store chain, forecast profit for the current year that trailed analysts’ estimates as shoppers restrain spending and its expansion into Canada boosts costs.
Profit per share in the year through January 2015 will be $3.75 to $3.90, the Seattle-based retailer said yesterday in a statement. The average of 28 analysts’ estimates compiled by Bloomberg was $4.07.
Nordstrom and other luxury retailers offered at least 40 percent off on many brands during the holiday season to lure in well-heeled shoppers who hesitated to increase spending. Fourth-quarter revenue increased 0.4 percent to $3.71 billion, trailing analysts’ $3.73 billion average estimate. The retailer said pre-opening costs and infrastructure investments in Canada will continue to weigh on earnings this year.
Net income in the quarter ended Feb. 1 fell 5.6 percent to $268 million, or $1.37 a share, from $284 million, or $1.40, a year earlier, Nordstrom said. Analysts projected $1.34, the average of 28 estimates compiled by Bloomberg.
Nordstrom fell 0.8 percent to $58.95 at 4:39 p.m. in late trading in New York yesterday. The shares had retreated 3.8 percent this year through yesterday’s close, compared with a 0.5 percent drop for the Standard & Poor’s 500 Index.
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