Updated from 10:58 a.m. EDT
Shares in retailer
plunged around 25% in early trading after the company warned that its quarterly earnings will fall short of analysts' expectations.
In an announcement before the market open, the company said its second-quarter earnings will be approximately 39 cents to 43 cents a share. Analysts had expected the company to report 55 cents a share, according to research firm
First Call/Thomson Financial
Nordstrom closed Friday's session down 4 5/16, or 19%, at 17 7/8, after reaching a 52-week low of 16 9/17. Its 52-week high is 34 1/2.
The company attributed the anticipated shortfall on lower-than-expected sales, above-plan markdowns and higher marketing costs.
"Sales in our recent men's and women's half-yearly clearance events were not as strong as we had anticipated, and sales for the first week of our Anniversary Sale, while modestly better than last year on an event-to-date basis, are below planned levels," said John Whitacre, Nordstrom's chairman and chief executive, in a statement.
The news marks the latest downer in the beleaguered retail sector, which has seen many
specialty stores come under pressure from investors.
Seattle, Wash.-based Nordstrom is scheduled to report earnings after the market close on Aug. 16.