Nordstrom shares plunged after the company said Thursday it incorrectly overcharged some of its credit card customers and missed its original third-quarter earnings projections.
Nordstrom wrote down $72 million in credit card refunds to customers who were incorrectly charged higher interest rates. The one-time charge drove its net income down 42 percent to $67 million, or 39 cents a share, during the three months ended Nov. 3, compared with $114 million, or 67 cents a share, the year before.
Co-president Blake Nordstrom said the company has taken steps to ensure it doesn't overcharge customers in the future. A change in some of its internal settings in 2010 caused it to erroneously charge higher interest rates on store credit cards that were delinquent, executives said.