Nordstrom bought Trunk Club in 2014 for $350 million, but in its third-quarter earnings release, it announced that it was taking a $197 million write-down on the service. It is now worth just over $150 million.
Trunk Club is a service that allows customers to consult with a stylist and receive a box of high-end clothing and accessories. It also has six brick-and-mortar locations for in-person styling.
According to the release, Trunk Club is continuing to deliver top-line growth, but now projects lower growth and profitability than originally expected.
[Image via Trunk Club]ES