Nordstrom (JWN) - Get Nordstrom, Inc. (JWN) Report was down more than 3% on Thursday after analysts at Goldman Sachs lowered their rating on the stock to sell from neutral due to concerns about cannibalization headwinds.
The firm also set a $30 price target on the stock, down significantly from its previous target of $50, as pressure on its bottom line mounts following its January announcement that it expects full-year fiscal earnings to be on the lower end of its guidance of $3.27 to $3.37 per share.
"Following two releases in which full-price comps have disappointed versus our expectations, we have fading confidence in the outlook for the core department store business, and see choppy gross margins as likely offsetting good news on costs as the company cycles generational investments," said Goldman analyst Alexandra Walvis.
The firm is concerned about the cost of production due to the ongoing trade war between the U.S. and China.
"Overall, we expect rising costs of production both inside and outside of China from tariffs and outsized demand respectively, increased inventories as companies pre-ship product or face longer in-transit lead times, and greater risk of disruption to product orders and cost bases," Walvis wrote.
The stock fell 3.17% to $31.18.