Trading was rough on the Friday before Thanksgiving for Etsy and a variety of clothing and fashion retailers.
Etsy (ETSY) fell 3.9% at about 2:40 p.m., while other retailers were hit even harder. New York & Company Inc. (NWY) and Francesca's Holdings Corp. (FRAN) were both down about 7%, while Abercrombie & Fitch Co. (ANF) slipped by 5%. Other major clothing shops were down, too, with American Eagle Outfitters (AFG) losing by about 3.4%; Michael Kors Holdings Ltd (KORS) down 3.9%; and Gap (GPS) and Ralph Lauren Corp (RL) down more than 2%.
The tough day of trading comes just over a week after Brooklyn-based Etsy released strong third-quarter earnings, with a gross merchandise value rising 20% to $922.5 million and total revenue up over 41% to over $150 million in the third quarter.
But it also comes amid bad news for one major clothing retailer, Nordstrom. Nordstrom (JWN) was down 14.7% on Friday on news the day before that it overcharged some of its credit card users, leading the company to write down $72 million in refunds for customers who paid incorrectly higher rates. The fiasco slashed Nordstrom's third-quarter net earnings to $67 million, compared with $114 million during the same quarter last year. Otherwise, said the company, the earnings would have been flat.
Without the $72 million charge -- which comes out to 28 cents per diluted share -- Nordstrom was "on track to achieve an inflection point for profitable growth in fiscal 2018," says the company.