Why Nordstrom Shares Are Plunging Today

Nordstrom Inc JWN is trading significantly lower Wednesday after the company announced worse-than-expected third-quarter financial results.

Nordstrom reported quarterly earnings of 39 cents per share, which is up from 22 cents per share year-over-year. The company reported quarterly revenue of $3.53 billion, which came in below the estimate of $3.54 billion. 

Nordstrom reaffirmed that full-year revenue is expected to grow more than 35% year-over-year.

"We're taking action to improve performance at Nordstrom Rack, including optimizing inventory levels, better balancing price points and increasing brand awareness. Work is also underway to improve merchandise margin across the company and ensure we have the visibility and flexibility we need to serve our customers seamlessly, despite global supply chain challenges," said Erik Nordstrom, CEO of Nordstrom.

Related Link: Nordstrom Shares Plummet As Q3 EPS Lags Consensus

Nordstrom is a fashion retailer that operates approximately 100 department stores in the U.S. and Canada and approximately 250 off-price Nordstrom Rack stores.

JWN Price Action: Nordstrom has traded as high as $46.45 and as low as $22 over a 52-week period.

The stock was down 28.20% at $22.91 at time of publication.

Photo: Mike Mozart from Flickr.