Nordstrom is making a large investment in its e-commerce initiatives, spending even more than it had planned to better compete with the likes of Amazon.com.
And in the short run, at least, Wall Street is taking the company to task for the move, sending its shares down nearly 5 percent in trading today, after Nordstrom’s earnings yesterday fell short of analysts’ expectations.
The Seattle-based company cited e-commerce spending as a big factor as retail selling, general and administrative expenses increased $110 million, or 18 percent.
In addition, the company boosted its spending projections by another $10 million for the full year, saying it now expects expenses in that category to increase $275 to $340 million for the current year.
Amazon this week signaled plans to move more aggressively into high-end retail, intensifying the cross-town rivalry with Nordstrom.