What: Nordstrom experienced a tougher holiday season than expected, leading to the company having to lower its outlook fiscal 2022.

Why it is important: With lower-than-expected sales, it’s becoming clear that consumers are being more selective with their spending given the impending recession

The Seattle-based retailer had a tough holiday season with intensified markdowns and sales lower than anticipated. Net sales decreased 3.5% for the nine-week holiday period in comparison to the prior year.

By division, Nordstrom’s net sales decreased 1.7% and net sales at Nordstrom Rack decreased by 7.6%. As a result, the stock fell more than 6% in after-market trading.

The company did state that its inventories are in better shape and healthy which will allow them to react quickly to the changing consumer demand as they continue to enhance their customer experience and further optimize their supply chain.

Nordstrom loses ground during holiday season