Nordstrom Shares Sink as Markdowns Cut Into Profits
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Nordstrom Inc. sank after saying higher discounts are hurting profitability at its upscale department stores and discount chain.
The retailer reiterated its full-year forecasts despite beating analyst estimates for sales and profit in the third quarter ended Oct. 29, suggesting tough months ahead. Disappointing margins were blamed on a higher rate of promotions and the company said it expects the magnitude of markdowns to be the same this quarter.