Shares of several department retailers dropped in morning trading after reporting quarterly sales declines, joining a collection of sector peers that are also experiencing sales weakness amid a difficult retail environment.

NORDSTROM: After the market close yesterday, Nordstrom (JWN) reported Q1 EPS of 26c on revenue of $3.2B, falling short of analysts' expectations of 46c and $3.28B, respectively. Same-store sales for the quarter fell 1.7% year-over-year, the company said. In addition, the retailer slashed its FY16 adjusted EPS guidance range to $2.50-$2.70 from $3.10-$3.35 and cut its revenue growth view for the year to 2.5%-4.5% from 3.5%-5.5% and its SSS view to down 1% to up 1% from flat to up 2%. Analysts expect FY16 adjusted EPS of $3.20 on revenue of $14.93B. Commenting on the results, Nordstrom co-president Blake Nordstrom said that the company has made "further adjustments" to its inventory and expense plans in response to weak Q1 results. On its earnings conference call, the company said it anticipates that "uncertainty" in sales will continue in 2016. Following the results, Stifel lowered its price target on the stock to $54 from $66 but maintained a Buy rating, saying Nordstrom should be bought on weakness and sees EPS growth accelerating going forward. Deutsche Bank analyst Paul Trussell also cut its price target for Nordstrom to $47 from $57 and kept a Buy rating, saying that the company is experiencing a "down-cycle."

DILLARD'S: Dillard's (DDS) also announced Q1 earnings after the close yesterday, reporting Q1 EPS of $2.17 on revenue of $1.5B, well below analysts' estimates of $2.57 and $1.56B, respectively. The company said total merchandise sales for the quarter fell 5% year-over-year while SSS also declined 5%. After the report, Deutsche Bank's Trussell cut his price target to $55 From $65 and reiterated a Sell rating on the stock, saying he sees the company's FY16 EPS decreasing 15% and does not anticipate a rebound to positive territory in fiscal 2017 given what he views as a lack of growth initiatives.

J.C. PENNEY: Before the market open today, J.C. Penney (JCP) reported an adjusted loss per share for Q1 of 32c on revenue of $2.81B, compared with analysts' estimates of a loss of 38c on revenue of $2.92B. The company said SSS for the quarter fell 0.4% year over year. Looking forward, J.C. Penney said it expects "positive" adjusted EPS for fiscal 2016 with SSS up 3%-4%. The company lowered its FY16 gross margin view to up 10-30 basis points from up 40-60 basis points, later noting that appliances will negatively impact gross margin, and still sees FY16 EBITDA of $1B. The retailer noted positive comps in February and the last two weeks of April, but experienced negative SSS in March and early April. Like other retailers, J.C. Penney said it was negatively impacted by factors outside its control. Commenting on the quarter, Buckingham Research said that J.C. Penney's results were "better than feared."

WHAT'S NOTABLE: Several other retailers reported significant sales declines this week. Kohl's (KSS) and Macy's (M) both reported weaker-than-expected Q1 sales this week, with Macy's also slashing its FY16 EPS and SSS guidance. Earlier in the week, Gap (GPS) reported its fifth consecutive month of sales declines and provided an outlook for Q1 EPS that was lower than analysts' estimates.

PRICE ACTION: In morning trading, Nordstrom dropped 14.5% to $38.66, Dillard's slipped 1.5% to $59.64 and J.C. Penney fell 2.7% to $7.59.

OTHERS TO WATCH: For the week, Macy's dove 18.65%, Kohl's dropped 13.73% and Gap fell 19.43%.