Nordstrom Sales to Loyalty Members Drive Deeper Quarterly Loss

Nordstrom Inc.’s loss in the most recent quarter was worse than expected in part because loyalty members accumulated more rewards than the department-store chain had anticipated.

Nordstrom credit-card holders are awarded points when they buy items, which can be redeemed for discounts on future purchases. Chief Financial Officer Cathy Smith told analysts on an earnings call Thursday that while the points will underpin future sales and profit, the retailer has to set aside reserves to account for them on its bottom line before they are spent.