Nordstrom Revises Expectations Downward

Total sales for the first quarter decreased 3.8 percent to $1.88 billion, down from $1.95 billion in last year's first quarter. First quarter 2008 same-store sales decreased 6.5 percent.

Even though Nordstrom opened four full-line stores during the first quarter -- in Aventura, Fla.; Honolulu, Hawaii; Burlington, Mass.; and Clinton Township, Mich. -- management says the company has taken a more cautious approach to planning the rest of this year.

Nordstrom will reduce operating expenses to mitigate the impact of lower sales expectations on earnings. And, Nordstrom is projecting decreased earnings for the fiscal year that ends Jan. 31, 2009. Revised expectations for the remainder of this year predict a 4 percent to 6 percent decrease in same-store sales.

Well, there you have it. It's not pretty, but wise retailers will take a cue from Nordstrom and take steps now to weather slow months to come.