Nordstrom doesn't see a way to profitability in Canada, so it is pulling out of the market.
The retailer is closing 13 stores and laying off about 2,500 workers, according to the Wall Street Journal.
"We entered Canada in 2014 with a plan to build and sustain a long-term business there," said Chief Executive Erik Nordstrom. "Despite our best efforts, we do not see a realistic path to profitability for the Canadian business."
The move will result in a decline of about $400 million in net sales for the fiscal year.
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Nordstrom's e-commerce operations in Canada will stop operating Thursday and the in-store wind down is expected to be completed by June.
On Thursday, Nordstrom posted a deeper-than-expected decline in sales in its latest quarter.
Net income rose to $119 million, compared with $104 million from a year earlier.
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Adjusted profit came to 74 cents per share, which topped expectations.
Sales declined 4.2% to $4.20 billion, missing the $4.35 billion estimate, according to FactSet.
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"While the incremental markdowns in the second half impacted our margins, we are better positioned for a stronger 2023," Nordstrom said.
