Nordstrom, JCPenney Disappoint In Q2, But For Different Reasons

Although Macy’s successfully maintained its holiday season momentum in Q1, fellow department stores JCPenney and Nordstrom weren’t as fortunate in their earnings results.

Same-store sales at Nordstrom rose 0.6% in Q1, below estimates of 1.1%, while JCPenney same-store sales rose 0.2%, well short of analysts’ forecasts for roughly 2% growth. JCPenney saw total revenue dip 4.3% to $2.58 billion, but narrowed its net losses from $187 million to $78 million. The most unfortunate result for JCPenney is its expectations for the year: 2018 guidance initially ranged between earnings of $0.05 and $0.25 per share, but the retailer has cut the outlook range down to a loss of $0.07 to a gain of $0.13 per share.

Nordstrom’s Q1 miss on same-store sales was enough to overshadow better-than-expected revenue and earnings for the first quarter. It didn’t help that its Nordstrom Rack off-price business also disappointed in same-store sales, generating only 0.4% growth. Traditionally, Nordstrom has…