After Hours Alert: What's Going On With Kohl's And Macy's Shares?

Kohl's Corp KSS and Macy's Inc M shares are falling in Thursday's after-hours session in sympathy with Nordstrom Inc JWN, which plunged after the company reported weak holiday sales.

What Happened: Nordstrom said net sales decreased 3.5% year-over-year during the nine-week holiday period ended Dec. 31. Nordstrom sales were down 1.7% and Nordstrom Rack sales were down 7.6%. 

"The holiday season was highly promotional, and sales were softer than pre-pandemic levels. While we continue to see greater resilience in our higher income cohorts, it is clear that consumers are being more selective with their spending given the broader macro environment," said Erik Nordstrom, CEO of Nordstrom.

Related Link: Why Nordstrom Shares Are Getting Hammered During Thursday's After-Hours Session

Nordstrom did ramp up markdowns in order to finish out the year with a healthy inventory position. The company said inventory levels were down a double-digit percentage year-over-year.

As a result of the weak holiday sales, Nordstrom now expects fiscal 2022 revenue growth to be at the low end of its previous outlook of 5% to 7%. The company also slashed its 2022 earnings guidance from $2.30 to $2.60 per share to $1.50 to $1.70 per share. 

Nordstrom is set to report its fourth-quarter results after the market close on March 2.

Nordstrom, Kohl's and Macy's all operate in the multiline retail space. 

KSS, M Price Action: At publication time, Kohl's is down 4% in after hours and Macy's is down 2.59%, according to Benzinga Pro.

Photo: courtesy of Kohl's.