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Nordstrom warns on 4Q
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January 5, 2001: 11:07 a.m. ET
Specialty retailer cites 'disappointing' December sales for forecast
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NEW YORK (CNNfn) - Nordstrom Inc. said Friday that fourth-quarter profit will miss Wall Street forecasts due to disappointing holiday sales, making it the latest big retailer to warn about results in the wake of a slowing economy, high energy prices and foul weather.
 The Seattle-based specialty retailer said sales at stores open at least a year fell 2.9 percent in December. As a result, it said, its earnings for the quarter would be 18 to 23 cents a share versus Wall Street forecasts of 38 cents a share. It cited more aggressive promotions on merchandise as a reason for the shortfall.
Nordstrom (JWN: Research, Estimates) stock, which has been cut nearly in half from its 52-week high of $34.50, shed $1.56 to $18.81 in afternoon trading Friday.
"December performance was disappointing, and it represents a large portion of our business for the fourth quarter," President Blake Nordstrom said.
Nordstrom, an upscale apparel retailer, has a total of 120 stores across the United States, more than half of which are its flagship department stores. The company has about 47,000 employees.
Like most retailers, Nordstrom has suffered from a slowing economy that has forced it to offer steep discounts, which hurt margins and cut into profits. However, apparel retailers such as Nordstrom have been particularly hard hit as a fashion malaise and a general spending slowdown by consumers with full wardrobes has come into play.
The holiday season, which can account for as much as 70 percent of a retailer's yearly profits, was disappointing for many.
On Thursday, several specialty retailers warned about current-quarter earnings because of disappointing holiday sales. 
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Nordstrom
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