Nordstrom Rack Just Had Another Terrible Quarter
In the past few years, Nordstrom (NYSE: JWN) has stood out as one of the only companies in the department-store space that was still growing. Most of that growth has come from its Nordstrom Rack off-price division.
The Nordstrom Rack chain holds huge promise and could be worth as much as Nordstrom's entire market cap. However, the Rack hasn't been living up to its potential in recent years -- and its results took a turn for the worse last quarter.
From 2012-2014, Nordstrom Rack averaged mid-single-digit comparable-store sales growth while also rapidly expanding its store count. That trend abruptly changed in 2015. Comp sales declined 1% at Nordstrom Rack stores during fiscal 2015, rose just 0.2% in fiscal 2016, and then fell 0.9% during the first half of 2017.
Source: Fool.com