Nordstrom on Thursday reported decrease gross sales and earnings for the vacation quarter, though earnings topped Wall Avenue’s expectations.

The corporate stated it expects gross sales to say no within the new fiscal 12 months, reflecting partially its choice to wind down its Canadian operations.

“We entered Canada in 2014 with a plan to construct and maintain a long-term enterprise there. Regardless of our greatest efforts, we don’t see a practical path to profitability for the Canadian enterprise,” CEO Erik Nordstrom stated in a launch Thursday.

This is what the division retailer reported for the fiscal fourth-quarter in contrast with what analysts had been anticipating, based mostly on Refinitiv estimates:

• Earnings per share: 74 cents vs. 66 cents anticipated
• Income: $4.32 billion vs. $4.34 billion anticipated

Nordstrom has struggled with slower gross sales, extra markdowns and scrutiny from a outstanding activist investor. Its web revenue within the interval ended Jan. 28 fell to $119 million, or 74 cents per share, from $200 million, or $1.23 per share, a 12 months earlier.

For the brand new fiscal 12 months, Nordstrom expects income to fall 4% to six%, together with a damaging impression from Canadian retailer closures and a optimistic impression from a 53rd week. It additionally projected EPS of 20 cents to 80 cents for the 12 months, which additionally consists of potential results from the Canadian wind-down.

As of Jan. 28, the corporate stated it had six Nordstrom shops and 7 Nordstrom Rack shops in Canada. Nordstrom stated it ceased its Canadian e-commerce platform Thursday. It expects to complete Canadian retailer closures in Canada by late June.

Even earlier than Nordstrom reported earnings, it minimize its forecast and informed traders that it had a tough vacation. In January, the division retailer chain stated its web gross sales dropped 3.5% for the nine-week interval that ended Dec. 31 in contrast with the year-ago interval. Its web gross sales declined sharply throughout that stretch at its off-price banner, Nordstrom Rack.

One of many causes for disappointing gross sales? Extra markdowns. Nordstrom stated it discounted merchandise greater than anticipated in November and December, so it might begin the fiscal 12 months with a more healthy degree of stock.

The corporate drew consideration and noticed its inventory soar in February, as activist investor Ryan Cohen purchased a big stake within the firm. Cohen, the chairman of GameStop and founding father of Chewy, is interested by utilizing that place to push for change — together with getting former Mattress Bathtub & Past CEO Mark Tritton off of Nordstrom’s board.

Cohen purchased, and later offered, a significant stake in Mattress Bathtub, after criticizing Tritton’s technique and pushing for change at that firm, too.

As of Thursday’s shut, Nordstrom shares are up greater than 19% this 12 months.

Learn the complete Nordstrom earnings launch.