Nordstrom Guides Lower

It cites an inventory overhang.
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Nordstrom (JWN) - Get Report cut third-quarter earnings guidance, citing rising inventory and below-plan sales performance in September.

The Seattle-based department store chain said it now expects to make 50 to 53 cents a share for the third quarter ending next month, down from its previous forecast of 61 to 64 cents a share. Nordstrom said sales in stores open at least a year rose 3.2% in September.

"While we did experience positive same-store sales growth, we did not achieve our plan," said CEO Blake Nordstrom. "In addition, we entered the quarter with inventory levels above our plan and our below-plan sales performance put additional pressure on inventory levels. We are taking immediate action to bring inventory levels in line, which will negatively impact merchandise margins for the remainder of the year."

The news comes as mixed results continue to tumble in from the retail sector, where

Wal-Mart

(WMT) - Get Report

boosted third-quarter estimates and

Limited

(LTD)

cut its forecast for third-quarter results Thursday.