Nordstrom (JWN) shares fall as retailer

A person walks into a Nordstrom store for business as New York City moves into Phase 2 in New York City on June 29, 2020, following restrictions imposed to curb the coronavirus epidemic.

Rob Kim | Getty Images

Nordstrom on Wednesday reported a 22% sales decline for the nine-week period. Ended on 2 January, as the department store chain struggled to get shoppers to come for apparel, shoes and holiday gifts.

Its shares fell more than 2% in after-hours trading.

Nordstrom said its digital sales during the holiday period rose 23% from 2019 levels, and represented 54% of total sales, compared to 34% a year earlier. The company said that more than 30% of its customers’ online orders were fulfilled by its stores.

Nordstrom said the double-digit sales decline was in line with expectations for the fourth quarter.

CEO Eric Nordstrom said in a statement, “We are encouraged at an increasing pace throughout the holiday season and later.”

The company expects profit in the fourth quarter, but said it still faces pressure in its growing e-commerce business due to increased shipping surcharges.

Nordstrom is set to hold a virtual investor event on Feb. 4, and will report its fourth-quarter results on March 2.

Apparel retailer Urban Outfitters on Tuesday reported disappointing sales as store traffic declined due to the Kovid epidemic. However on Wednesday, big-box retailer Target said that same-store sales climbed more than 17% during the holidays, boosted by online profits. Off-mall retailers, such as Target, Best Buy and Walmart, are outperforming large-scale mall-based companies.

Nordstrom’s shares are down nearly 10% in the last 12 months. The company has a market value of about $ 6 billion.

Read the full press release from Nordstrom.


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