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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.