NORDSTROM REPORTS A DROP OF 22% IN HOLIDAY SALES

Nordstrom on Wednesday reported a sales decline of 22 percent for the nine-week period ended January 2nd, as the department store chain struggled to get shoppers to come into its stores this holiday season.

Nordstrom said its digital sales during the holiday period grew 23 percent from 2019 levels, and represented 54 percent of total sales, compared with 34 percent a year ago. And more than 30 percent of customers’ online orders were fulfilled by its stores, the company added.

The double-digit sales decline was in line with expectations it had set for the fourth quarter, Nordstrom said.

“We’re encouraged by the increasing momentum throughout and following the holiday season as we continue to unlock new ways to better serve customers on their terms with greater convenience and connection,” said Erik Nordstrom, chief executive officer of Nordstrom, Inc. “By leveraging order pickup and store fulfillment capabilities across our two brands of Nordstrom and Nordstrom Rack, we’re seeing benefits to our customers as well as to our business. We’re deeply appreciative of our team’s focus on providing customers with a strong holiday offering during these challenging times.”

As a result of its holiday performance, the retailer continues to expect to deliver positive earnings before interest and taxes (EBIT) and operating cash flow for the fourth quarter.

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