Rolls of gift paper hang on display at a Nordstrom Local concept store in New York, Sept. 5, 2019.
Demetrius Freeman | Bloomberg | Getty Images
Nordstrom announced Tuesday it is changing its leadership structure, appointing Erik Nordstrom as sole CEO and retiring its co-presidency.
It announced the changes as it reported fourth-quarter earnings and sales that missed analysts’ estimates, sending shares tumbling.
Nordstrom also said it will be shrinking its board to 10 directors from 11.
Its shares initially cratered more than 10% in after-hours trading following the release. The stock was recently down about 8%.
Here’s how Nordstrom during its fiscal fourth quarter did compared with what analysts were expecting, based on data pulled from Refinitiv:
- Earnings per share: $1.42, adjusted, vs. $1.47 expected
- Revenue: $4.54 billion vs. $4.56 billion expected
Nordstrom’s results fall on the heels of Kohl’s reporting fourth-quarter results Tuesday morning that topped analysts’ estimates. But Kohl’s still cited weakness in its women’s apparel business. Macy’s and J.C. Penney have likewise been struggling to grow apparel sales.
Nordstrom shares have fallen about 28% over the past 12 months. The company has a market cap of about $5.3 billion.
Read the full earnings press release here.
This story is developing. Please check back for updates.
Correction: Nordstrom is shrinking the size of its board, going to 10 from 11. An earlier headline said the board’s size would increase.