Shares of Nordstrom (NYSE:JWN) lost 25.5% in value last month, according to data from S&P Global Market Intelligence.
The department store delivered lower-than-expected earnings results for the fiscal second quarter in late August. The weak results, along with the pullback in the broader market last month, sent the shares tumbling.
Sales in the second quarter were down 53% year over year. Investors are concerned about the company’s near-term prospects given the weakened economy, which has put more pressure on struggling department stores. Stores were closed for approximately 50% of the operating days during the quarter.
Despite the weak environment, management has lowered inventory by more than 25% and reduced costs. This led to improved merchandise margins and contributed to positive operating cash flow of $185 million for the quarter.
While the near term will be challenging, President Pete Nordstrom said,