Nordstrom Inc. shares are down 4.2% in Tuesday trading after the department store retailer announced 2018 sales guidance that’s below the FactSet consensus. Nordstrom is hosting its investor day today. Nordstrom expects fiscal 2018 sales of $15.2 billion to $15.4 billion, lower than the $15.8 billion FactSet consensus. Same-store sales are expected to be up 0.5% to 1.5% and diluted earnings per share are expected to be $3.35 to $3.35. The FactSet consensus is for a same-store sales increase of 0.8% and EPS of $4.54. For the long term, sales are expected to grow 3% to 4% on an average annualized basis from 2017 to 2022, and earnings before interest and taxes (EBIT) is expected to grow 5% to 6% on an average annualized basis for the period. Nordstrom was downgraded to sector weight at KeyBanc Capital Markets based on the cost of competing with Amazon.com Inc. , which continues to build its apparel business, and Stitch Fix Inc. , which has a “data-focused approach,” analysts said. “At Nordstrom, e-commerce is now 25% of sales, but inconsistent full-line comps point to channel substitution,” wrote analysts led by Edward Yruma. “We remain impressed by Nordstrom’s openness to reinventing itself – fortuitous investments in e-commerce and Rack have given the retailer a fairly unique level of stability. However, initiatives like pop-ups, product exclusives, and remodels have been unable to counter the natural traffic migration to e-commerce at the full-line stores.” Moreover, it will be costly to maintain these efforts. Nordstrom announced Monday that it will add two new Local stores in California, building on its small-format, highly-personalized store design. Nordstrom shares are up 8.3% for 2018 to date, while the S&P 500 index has rallied 4.4% for the period.