Nordstrom says shoppers are still cautious, but sees fewer discounts this year

Shares of Nordstrom Inc. fell after hours on Tuesday after the department-store chain’s full-year sales forecasts spooked investors, as inflation-fatigued customers continue to have reservations about buying new clothes.

However, the company said it expected its retail-industry peers to back off the discounting that has defined clothes-shopping for the past two years.

That…