Nordstrom shares shed 17% on disappointing guidance

Retail pain hit another company Thursday, as Nordstrom reported disappointing quarterly earnings and warned about slowing sales.

The retailer posted fiscal first-quarter earnings of 26 cents per diluted share on $3.25 billion in revenue. Profit fell from 66 cents per share in the prior-year period, while sales rose slightly from $3.22 billion.

Wall Street expected Nordstrom to report earnings of 45 cents per share on $3.28 billion in sales, according to a Thomson Reuters consensus estimate. The shares plunged 17 percent in after-hours trading.

"Our first-quarter results were impacted by lower-than-expected sales. In response we have made further adjustments to our inventory and expense plans," said Blake Nordstrom, co-president of Nordstrom, in a statement.

For Nordstrom's first quarter, comparable sales decreased 1.7 percent. However, the same metric for its off-price stores rose 4.6 percent.

The company cut its outlook for 2016 sales growth to 2.5 to 4.5 percent, from its previous guidance of 3.5 to 5.5 percent. It expects comparable sales in a range of a 1 percent decrease to 1 percent increase, down from a previous outlook of flat to 2 percent increase.

It also said it expects earnings of $2.50 to $2.70 per share, down from prior guidance of $3.10 to $3.35 per share.

Nordstrom's results add to a rough stretch for recent retail earnings. Kohl's shares dropped 9 percent Thursday after the low-price department store chain said comparable store sales fell 3.9 percent in the first quarter. Wall Street expected a slight increase.

Macy's shares shed more than 15 percent of their value Wednesday following the department store chain's weak fiscal first-quarter results. Sales fell 7.4 percent and the company lowered its earnings guidance.