Adjusted earnings in the quarter were 23 cents a share vs. expectations of 42 cents, while sales fell to $3.4 billion from $3.6 billion a year ago and missed forecasts of $3.6 billion.
"While we expected softer trends from the fourth quarter to continue into the first quarter, we experienced a further deceleration," said said Erik Nordstrom, co-president. "We had executional misses with our customers, and we're committed to better serving them. This is well within our control to turn around."
The company said it "began taking steps to drive improvement, which include: resolving executional issues associated with the launch of its enhanced loyalty program; further investing in its digital marketing; and re-balancing its merchandise assortment to better align with customer expectations."
Nordstrom also lowered its expectations for the fiscal year, saying it expects earnings of $3.25 to $3.65 a share vs. previous guidance of $3.65 to $3.90. Analysts were expecting earnings of $3.72 a share. Net sales expectations were revised down to a 2% decrease to flat vs. prior company estimates of a 1% to 2% increase.
The stock fell 7.9% to $34.88 on Wednesday.