Market Insider

Nordstrom plunges 13 percent after big earnings miss

A retail worker adjusts a display of handbags in a Nordstrom store.
Ben Nelms | Bloomberg | Getty Images

Nordstrom shares fell more than 13 percent Friday after the company's first-quarter results missed the mark with Wall Street.

The company 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.

At Friday's close, Nordstrom's stock had fallen more than 21 percent in 2016, and nearly 49 percent in the past year. The stock hit its lowest level since August 2011.

JWN in past 12 months

Source: FactSet

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The SPDR S&P Retail ETF clawed back into positive territory after being briefly dragged into the red at the open on the heels of Nordstrom's decline. Still, the index is on track for a nearly 5 percent weekly decline, amid a slew of retailers posting disappointing quarterly results.

"It was probably the worst week for department stores we've seen since the financial crisis. The bottom line is I think the department store sector is losing a degree of relevance," Matthew Boss, equity research analyst at JPMorgan, told CNBC's "Squawk on the Street" on Friday.

"I do think the consumer is also finding more convenient ways to shop and they're looking for value. Right now, department stores are not delivering that," he said.

J.C. Penney reported mixed results Friday before the bell, while Dillard's unveiled weaker-than-expected results Thursday after the close. Both stocks closed more than 1 percent lower.

— CNBC's Jacob Pramuk contributed to this report.