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Ukrainian President Zelenskyy: He held talks in the UK with British Prime Minister Starmer, French President Macron, and German Chancellor Merz.Iranian Parliaments National Security Committee: No one should think the war is over.On June 7th, US President Trump stated that it would be a mistake for Federal Reserve policymakers to raise interest rates after the US jobs data significantly exceeded expectations. He also insisted that he did not want to influence Kevin Warsh before his first Fed meeting. In an interview with NBC, Trump said, "These days, whenever the economic data is good, the market goes down because everyone thinks the Fed will raise rates. But theres absolutely no reason to raise rates." Trumps remarks further increased the economic and political pressure on Warsh. Trump stated, "Raising the benchmark interest rate is the wrong thing to do. In fact, we should lower rates." Trump added, "I work with Kevin now. I have a lot of respect for him, but my view is that when a countrys economy is doing well, it shouldnt be punished immediately by raising interest rates." He further added, "We have a debt problem, and a lot of other things to deal with, a lot of plans to move forward. I want to further increase defense spending."June 7th - According to a communique released after Sundays OPEC meeting, the seven OPEC+ member countries (Russia, Saudi Arabia, Iraq, Kazakhstan, Kuwait, Algeria, and Oman) decided to raise their daily crude oil production ceiling by 188,000 barrels starting in July. The communique stated that the countries reiterated the importance of a cautious approach and will retain full flexibility to increase, suspend, or reverse voluntary production cuts. The seven countries will meet again on July 5th.US President Trump: There is no reason to raise interest rates (regarding the Federal Reserve).

Off-price Rack Sales Drop, Nordstrom Lowers Profit Forecast

Charlie Brooks

Jan 20, 2023 10:41

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After poor Christmas sales and a 6% decline in after-hours trade on Thursday, Nordstrom Inc. (NYSE:JWN) lowered its yearly profit projection.


The company expected 5% to 7% annual sales growth. From Jan. 1 to Dec. 31, 2022, Nordstrom Rack's net sales fell 7.6%.


Americans have cut discretionary spending due to decades-high inflation, and drastic inventory cuts have affected U.S. stores.


Macy's Inc. (NYSE:M) cut its holiday sales projection earlier this month, blaming a longer-than-expected retail drop between Black Friday and Christmas. Lululemon Athletica (NASDAQ:LULU) warned of quarter margin reduction.


The National Retail Federation reported decreased Christmas sales on Wednesday because shoppers bought in October when businesses offered higher discounts.


Nordstrom is underperforming.


It had to provide more markdowns than planned, and its Rack banner is currently grappling with inventory mismanagement and merchandising concerns exacerbated by supply-chain issues during the pandemic, when women's clothes and shoes were scarce.


William Blair analyst Dylan Carden said Rack had persistent merchandising mistakes.


Nordstrom expects fiscal 2022 adjusted EPS of $1.50 to $1.70, down from $2.30 to $2.60.


Lower inflation, larger inventory, and typical freight and labor costs should assist Nordstrom and other retailers this year, analysts said.


"Going into 2023, that gives me some comfort that even if the first half is kind of mediocre, maybe it'll start to look better," Morningstar analyst David Swartz said.


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