Nordstrom, Inc.(NYSE: JWN) has posted mixed first quarter earnings results and reiterated its full-year 2017 outlook, as a brick-and-mortar downturn continues to take its toll on traditional retailers. As a result, the stock fell over 5.8% in the pre-market session on May 12th, 2017 (as of 7:55AM EDT ; Source: Google finance).

Nordstrom has  become the latest department store operator after Macy’s and Kohl’s to report weaker-than-expected quarterly same-store sales, underscoring the industry’s struggle to attract customers amid a slump in demand for apparel and a shift to shopping online. Further, department stores are struggling with declining mall traffic as well as tough competition from online retailers and off-price stores. They have tried to cope by cutting costs through store closures, managing inventory better and squeezing more out of their real estate.

Nordstrom in the first quarter of FY 17 has reported the adjusted earnings per share of $0.46, beating the analysts’ estimates for the adjusted earnings per share of $0.27. The company had reported the adjusted revenue growth of 2.7 percent to $3.28 billion in the first quarter of FY 17, slightly missing the analysts’ estimates for revenue of $3.29 billion. JWN has noted that online sales totaled 24% of total net sales. Nordstrom.com saw 11% growth, while Nordstromrack.com/HauteLook gained 19%. The total comparable sales (comps) for the latest period fell 0.8%, compared with flat sales expected by analysts.

Moreover, Macy’s inventory has increased 4.2 percent, which in part led to a bigger-than-expected drop in its profit. In contrast, Kohl’s inventory has fallen 2.3 percent, helping the company’s profit beat analysts’ expectations. JWN’s inventory has increased 1.6 percent.

Additionally, Nordstrom has expanded its Nordstrom Rewards loyalty program in May 2016 to enable all customers to earn benefits regardless of how they choose to pay. Nordstrom has more than 8.6 million active Rewards customers in the U.S. and Canada, up over 70 percent, from approximately 5 million a year ago. Sales from Nordstrom Rewards customers represented 47 percent of first quarter sales, compared with 39 percent a year ago.

During the first quarter, Nordstrom has repurchased 4.6 million shares of its common stock for $206 million. A total capacity of $414 million remains available under its existing share repurchase board authorization.

Nordstrom has reaffirmed its prior guidance for the earnings per share, and expects it to be in the range of $2.75 to $3.00, which is in-line with analysts’ view of $2.93. The company expects the sales growth of 3% to 4% for the year, with comps relatively flat.

Nordstrom stock has fallen 3.85% in the last one year (source: Google Finance).As per tipranks.com, JWN has an average price target of $50, which is a further upside of 8.20%.