Nordstrom Inc. (Seattle) warned it would miss analysts'predictions for third-quarter income results, expecting to either break even or to endure a minor drop. Analysts predicted the company would post net income of 24 cents a diluted share.
The warning for the quarter ending Oct. 31 represents the second poor quarter in a row for the company, which posted a net income fall of 36 percent in the second quarter. This quarter's low expectations come as less of a surprise than last quarter's, since general expenses, markdowns, poor sales and one-time charges each played a part in the estimate.
The retailer will also suffer from charges as a result of the decreased value of Nordstrom's investment in Streamline.com Inc. And severance costs of about $13 million are related to the company's recent senior-management restructuring. Chairman and ceo John Whitacre was replaced by Blake Nordstrom in August.