Nordstrom, an upscale department store, announced that its sales and profits fell in the fiscal second quarter, reflective of cautious spending by shoppers. However, the results exceeded Wall Street expectations. Despite the positive news, Nordstrom’s stock dropped nearly 5% in after-market trading. Factors impacting sales included changes in the timing of the company’s anniversary sale and the wind-down of its Canadian operations.
The company reaffirmed its annual financial outlook, predicting a sales decline for the year. Conversely, Gap Inc. reported a profit compared to a year-ago loss but saw an 8% decline in sales across all its brands. Gap estimates a decrease in net sales for the third quarter and the year overall.