Nordstrom Lowers Annual Forecast as Inflation Hits Demand

Nordstrom Lowers Annual Forecast as Inflation Hits Demand
The Nordstrom store in Broomfield, Colo., on Feb. 23, 2017. Rick Wilking/Reuters
Reuters
Updated:

Nordstrom Inc. cuts its annual revenue and profit forecasts on Tuesday, a sign that decades-high inflation was squeezing consumer spending on its high-end clothing and footwear.

Runaway inflation has prompted consumers to shift spending away from clothing and other discretionary items to groceries, hitting sales at apparel retailers and driving up inventories.