Nordstrom shares tumbled Friday after the retailer reported a second-straight quarter of softness across its full-price, discount and online stores.
At one point, shares fell more than 10 percent, but they recovered some of the losses by late morning. (Click here for the latest price.)
Analysts considered the best-in-class department store a casualty of the overall sluggish retail environment, particularly as it pertained to discounting across the sector.
Even as the high-end store held the line on storewide promotions, its commitment to matching other stores' prices contributed to a 1.8 percent dent in its gross margin — a hit that was exacerbated by its need to mark down merchandise to clear inventory.
Paired with a conservative outlook for 2016, Nordstrom's second-straight quarter of disappointing results reignited investor concern that its exposure to the high-end consumer could translate into softness this year, particularly as the stock market continues to fluctuate.
But perhaps more importantly, its discount Rack stores — which have fueled much of the company's revenue growth over the past few years — posted their third same-store sales decline for the year.