JWN Nordstrom Inc

Nordstrom Inc. cut its projections for the year after the Seattle retailer reported disappointing third-quarter results following the sale of its U.S. credit-card portfolio.

Shares, down 20% this year, fell 17% in late trading to $52.74, below the 52-week low of $61.06 set Wednesday.

Nordstrom now projects profit of $3.30 to $3.40 a share with sales increasing 7.5% to 8%, down from its previous guidance for per-share earnings of $3.85 to $3.95 on a sales increase between 8.5% and 9.5%.

Comparable sales, which include sales at stores open for at least a year and online sales, are projected to increase 2.5% to 3%, compared with its previous view of 3.5% to 4.5%.

Overall, for the period ended Oct. 31, Nordstrom reported a profit of $81 million, or 42 cents a share, compared with $142 million, or 73 cents a share, a year earlier.

Revenue, which includes revenue from its credit cards, rose 6% to $3.33 billion. Sales rose 6.6% from the year earlier, while sales at established stores improved 0.9%.

Analysts surveyed by Thomson Reuters expected profit of 72 cents a share on $3.37 billion in revenue.

Inventory rose 8% from the year-ago period.

As of Oct. 31, Nordstrom carried $2.8 billion in debt and had $821 million in cash.

During the third quarter, Nordstrom opened its third store in Canada, a flagship store in Vancouver, as part of a push to open six full-line stores in the country, where it targets more than $1 billion in sales. It also opened 16 cheaper Rack shops.

Write to Maria Armental at maria.armental@wsj.com

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(END) Dow Jones Newswires

November 12, 2015 17:05 ET (22:05 GMT)

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