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Expectations for Nordstrom turn negative

May 31, 2019 / Ben Unglesbee
SHARESHARESHARE

S&P Global this week lowered its outlook for Nordstrom to negative as analysts with the ratings agency expect continued pressure on the department store chain's operating results.S&P maintained Nordstrom's BBB+ credit rating, but analysts said in an emailed press release the change in outlook "reflects the risk that profitability may not rebound sufficiently to maintain the rating given recent execution issues, heavy investments, and intense competition at both its full-price and off-price businesses."The change in S&P's outlook follows a weak quarter for the department store retailer, with sales falling at its mainline and off-price stores. S&P's revision signals a possible downgrade if Nordstrom comes up short of expectations again this year, or if it fails to improve in fiscal 2020. And this from a retail player that, amid the intense consolidation of 2017 and 2016, was a stand-out success story among department stores.