Nordstrom Plunges as ‘Vulnerable’ Middle-Class Shoppers Tighten Belt
- Weakness at its off-price Rack chain clouds earnings report
- Middle-income consumers are most vulnerable, Jefferies says
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Investors are getting daily reminders this earnings season that retailers catering to US middle-income shoppers are some of their most exposed bets.
Nordstrom Inc. tumbled 20% Wednesday in its biggest drop since November after slashing its full-year outlook, citing slowing customer traffic and demand at its off-price Rack stores. The slump brings the stock’s year-to-date decline to 18%, narrowing the gap it had established over its department-store peers.