Nordstrom Overcharges Credit Card Customers, Hurts 3Q Results

“We sincerely apologize to these cardholders. We realize customers and shareholders place a great deal of trust in us, and that’s a responsibility we take seriously,” Nordstrom said on a conference call with analysts covered by CNBC.

The company said that under 4 percent of cardholders will get a refund, with the majority getting under $100. CNBC noted that — excluding the charge — Nordstrom would have surpassed past Wall Streets views, which stood at earnings of $0.66 a share. The news sent shares of Nordstrom down around 11 percent in after-hours trading Thursday, noted CNBC.

During the third quarter, Nordstrom reported revenue of $3.75 billion, which was 3 percent higher than last year’s third quarter. According to CNBC, Wall Street was looking for revenue of $3.69 billion. As for sales at stores that have been open for at least a year, Nordstrom said sales were 2.3 percent higher, which also surpasses Wall Street views which stood at up 2.2 percent, reported CNBC. Earlier this week Nordstrom disclosed it suffered a data breach that exposed employee names, Social Security numbers, dates of birth, checking account and routing numbers, salaries and more. According to The Seattle Times, a company spokesperson confirmed that employees received an email notification and apology from co-president Blake Nordstrom last week regarding the breach.