(Bloomberg) -- Nordstrom Inc. fell the most since the early days of the Covid pandemic after quarterly results showed it's recovering more slowly than other retailers.
While second-quarter sales at the Seattle-based department-store chain doubled from a year ago, they remain 6% below the 2019 level. That contrasts with results from peers such as Macy's Inc. and Kohl's Corp., which have posted more robust rebounds. JPMorgan Chase & Co. downgraded the stock and highlighted that Nordstrom's performance was “underwhelming.”
While sales outpaced estimates, shares are falling because they “lagged below other retailers' two-year revenue growth,” Simeon Siegel, retail analyst at BMO Capital Markets, said in a note to clients.
Nordstrom stock plunged as much as 18%, the most since March 2020. The decline erased most of the company's gain this year.
Apparel companies are benefiting from consumers' renewed spending on clothes and luggage that they didn't need at this time last year. Nordstrom shows that the shift is still uneven, however. Another concern was the weakness of Nordstrom's discount chain, Rack, compared with peers such as TJX Cos. and Ross Stores Inc., suggesting the company may be facing deeper challenges.
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