Nordstrom has experienced a drop in its stock's value. Analysts predict that the retailer's Q1 2016 earnings will be lower than ever.
According to The Motley Fool, Nordstrom stock fell to 11 percent last month as per S&P Global Market Intelligence data.
It was previously reported that Nordstrom has cut 400 jobs to save about $60 million in annual costs. The initial job cuts were performed on open positions.
"We will never change our commitment to serving customers, but recognize how they want to be served has been changing at an increasingly rapid pace," Blake Nordstrom, co-president, Nordstrom, Inc., said in a statement. "Meeting our customers' expectations means we must continually evolve with them. We see opportunities to create a more efficient and agile organization that ensures we're best positioned to achieve our goals."
The recent job cuts came after Nordstrom announced last month that it had cut 130 technology-related positions. The company has more than 7,000 employees at its headquarters and 70,000 worldwide, including part-time positions.
It's not only Nordstrom stock that has experienced a drop in worth. Its peers, Gap, Macy's and J.C. Penney all fell by about 10 percent or more.
This comes after concerns about the apparel retail industry has increased. The publication added that an analyst report has predicted that department store chains will need to close hundreds of stores to keep up with current profitability levels.
Nordstrom will be reporting the financial results of its first quarter for this year on May 12. A conference call at 4:45 p.m. Eastern Daylight Time (EDT) will follow the announcement. Senior management will use this time to share their thoughts on the company's first quarter financial results as well as their plans and outlook for the rest of the year.
Yahoo noted that analysts expect Nordstrom to report a 30.3 percent decline from the first quarter of 2015. The decline is believed to be caused by the impact of the sale of credit receivables in Q4 2015 as well as the impact of growth initiatives.
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
