Nordstrom is changing its leadership structure and naming Erik Nordstrom its sole CEO.
According to CNBC, Nordstrom announced it will be changing its leadership structure and naming its Erik Nordstrom as its sole CEO after it reported fourth-quarter earnings and sales that missed analysts’ estimates, sending shares tumbling. Its stock initially cratered more than 10% in after-hours trading following the release. Shares were recently down about 7.5%.
Nordstrom also said it will be shrinking its board to 10 directors from 11, and establishing a new 10-year limit for members. Both of its former co-presidents, Erik and Pete Nordstrom, will remain on the board. Pete will become president of Nordstrom Inc. and chief brand officer, the company said.
Total revenue of the company grew to $4.54 billion from $4.48 billion a year ago, also short of the $4.56 billion expected by analysts. Looking to fiscal 2020, Nordstrom is calling for net sales to climb 1.5% to 2.5% as it tries new things to woo more shoppers to visit its stores or buy online.
