Nordstrom shares drop as retailer says vacation gross sales tumbled 22%

An individual walks into the Nordstrom retailer open for enterprise as New York City strikes into Phase 2 of re-opening following restrictions imposed to curb the coronavirus pandemic on June 29, 2020 in New York, New York.

Rob Kim | Getty Images

Nordstrom on Wednesday reported a gross sales decline of 22% for the nine-week interval ended Jan. 2, because the division retailer chain struggled to get customers to come back into its shops for attire, footwear and vacation presents.

Its shares fell greater than 2% in after-hours buying and selling.

Nordstrom stated its digital gross sales in the course of the vacation interval grew 23% from 2019 ranges, and represented 54% of whole gross sales, in contrast with 34% a 12 months in the past. And greater than 30% of consumers’ on-line orders had been fulfilled by its shops, the corporate added.

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

“We’re encouraged by the increasing momentum throughout and following the holiday season,” CEO Erik Nordstrom stated in a press release.

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The firm continues to count on a worthwhile fourth quarter, nevertheless it stated it nonetheless faces pressures because of heightened delivery surcharges at its rising e-commerce enterprise.

Nordstrom is ready to carry a digital investor occasion on Feb. 4, and can report its fourth-quarter outcomes on March 2.

On Tuesday, the attire retailer Urban Outfitters reported disappointing vacation gross sales because of declines in retailer visitors due to the Covid pandemic. While big-box retailer Target on Wednesday stated same-store gross sales climbed greater than 17% over the vacations, boosted by beneficial properties on-line. Off-mall retailers, like Target, Best Buy and Walmart, have largely been performing higher than mall-based corporations.

Nordstrom shares are down about 10% over the previous 12 months. The firm has a market worth of almost $6 billion.

Read the total press launch from Nordstrom.

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