Nordstrom, JC Penney hit by retail fallout

Listen to this article

00:00
00:00

Last season’s fashions aren’t the only things getting marked down.

US department-store chains Nordstrom and JC Penney are among the retail shares getting hammered after a dismal round of earnings released earlier in the day from competitors including Macy’s, Kohl’s and Dillard’s.

Nordstrom — which is set to announce earnings later today — was down 7.7 per cent in midday trading. JC Penney shares were off 7.5 per cent, a day ahead of its own earnings release, while Sears was down 9 per cent. Some non-department stores were also feeling the pinch, with Gap off 3.7 per cent, teen-centric American Eagle Outfitters off 5.1 per cent and Urban Outfitters falling 3.7 per cent.

The declines come as shares of Macy’s, Kohl’s and Dillard’s remain in a free-fall after reporting another quarter of steep declines in comparable sales, a key industry metric. Retailers are facing unprecedented upheaval amid falling mall traffic, shifting consumer shopping patterns and fierce competition, with department stores — a mall staple for decades — shouldering the brunt of the shift.

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.