Nordstrom’s profit drops 24%

SEATTLE — Luxury retailer Nordstrom Inc. said Thursday its profit fell 24 percent in the first quarter, as recession rumblings in the United States crimped even wealthier consumers’ shopping habits.

Nordstrom’s earnings fell to $119 million, or 54 cents per share, from $157 million, or 60 cents per share in the same three months last year.

Revenue slipped 4 percent to $1.88 billion from $1.95 billion a year ago.

Analysts had predicted Nordstrom would earn a slightly lower profit of 49 cents per share on slightly higher sales of $1.9 billion, according to a Thomson Financial survey.

The company said same-store sales, a key retail metric that measures sales at stores open for more than a year, fell 6.5 percent for the quarter, below the expected 3 percent to 5 percent drop.

Nordstrom said margins were lower than a year ago, hurt by merchandise markdowns.

For the current second quarter, Nordstrom forecast a profit of 65 cents to 70 cents per share. The midpoint of that range is less than Wall Street’s current view for 69 cents per share.

Nordstrom cut its earnings outlook for the full year to $2.65 to $2.89 per share, from an earlier forecast for $2.75 to $2.90 per share. Analysts are currently looking for $2.76 per share.

The retailer said it expects same-store sales to fall 5 percent to 7 percent in the quarter, and 4 percent to 6 percent in the year, a steeper drop than previously expected.

Nordstrom opened four new stores in the first three months of the year.