Nordstrom shares plunged after the company said it incorrectly overcharged some of its credit card customers and missed its third-quarter earnings.
Nordstrom said it took a one-time charge of $72 million to refund customers who were incorrectly charged higher interest rates on its store credit card, driving its net income down 42 percent to $67 million, or 38 cents a share, during the three months ended Nov. 3, compared with $114 million, or 67 cents a share, the year before.
The department store chain said, however, that it estimates that less than 4 percent of cardholders would be receiving a refund with most receiving less than $100.
Here’s how the company did compared with what Wall Street expected:
- EPS: 39 cents, vs. 66 cents forecast by Refinitiv
- Revenue: $3.75 billion, vs. $3.69 billion forecast by Refinitiv
- Same-store sales: Increase of 2.3 percent, vs. increase of 2.2 percent forecast by StreetAccount
Shares of Nordstrom fell more than 11 percent in after-hours trade.
Revenue rose 3 percent to $3.75 billion from a year ago, above expectations for $3.69 billion in sales.
Sales at stores open for at least a year were up 2.3 percent overall, above Wall Street expectations for an increase of 2.2 percent.
Shares of Nordstrom have surged 51 percent over the past 12 months, hitting a fresh 52-week intraday high of $67.75 on Nov. 6.
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