Nordstrom, Inc. (NYSE:JWN) stock plunges 18.73% (As on August 24, 11:16:26 AM UTC-4, Source: Google Finance) after the company cuts its annual revenue and profit forecast, a sign that decades-high inflation was squeezing consumer spending on its high-end clothing and footwear. The gross merchandise value (“GMV”) increased 12.2 percent. During the quarter, Nordstrom banner net sales increased 14.7 percent and GMV increased 14.9 percent. Net sales for Nordstrom Rack increased 6.3 percent. For the Nordstrom Rack banner, net sales increased 6.3 percent compared with the same period in fiscal 2021, improving sequentially from the first quarter versus pre-pandemic sales levels. Digital sales increased 6.3 percent compared with the same period in fiscal 2021. The timing shift of the Anniversary Sale had a positive impact on Company digital sales of approximately 400 basis points compared with the second quarter of 2021. Digital sales represented 38 percent of total sales during the quarter. Gross profit, as a percentage of net sales, of 35.2 percent increased 65 basis points compared with the same period in fiscal 2021 primarily due to leverage on buying and occupancy costs, partially offset by higher markdown rates. Ending inventory increased 9.9 percent compared with the same period in fiscal 2021, versus a 12.0 percent increase in sales.

JWN in the second quarter of FY 22 has reported the adjusted earnings per share of 81 cents, beating the analysts’ estimates for the adjusted earnings per share of 80 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 12 percent to $3.99 billion in the second quarter of FY 22, beating the analysts’ estimates for revenue by 3.26%.

Additionally, the company declared a quarterly cash dividend of $0.19 per share to be paid to shareholders of record at the close of business on August 30, 2022, payable on September 14, 2022. During the second quarter, the Company repurchased 1.5 million shares of its common stock for $35 million under its $500 million share repurchase program, which was previously announced as authorized by the board of directors on May 18, 2022. A total capacity of $465 million remains available under this share repurchase authorization.

The department store chain expects fiscal 2022 revenue to rise 5% to 7%, lower than previous expectation of 6% to 8% growth.

The company also expects fiscal 2022 adjusted profit per share between $2.30 and $2.60, compared with a prior forecast of $3.20 to $3.50.