Nordstrom shares fall as retailer says holiday sales plummet 22%

0
8

A person walks into the Nordstrom store opened for business as New York City enters Phase 2 of the reopening following restrictions imposed to stem the coronavirus pandemic on June 29, 2020 in New York, New York.

Rob Kim | Getty Images

Nordstrom on Wednesday reported a 22% drop in sales for the nine-week period ended Jan. 2, as the department store chain struggled to convince shoppers to come to its stores to purchase clothes, shoes and clothing. Christmas presents.

ALSO READ  WHO chief scientist warns of Covid complacency, says herd immunity unlikely before end of 2021

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

Nordstrom said its digital sales during the holiday season were up 23% from 2019 levels and accounted for 54% of total sales, up from 34% a year ago. And more than 30% of customers’ online orders have been fulfilled through its stores, the company added.

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

ALSO READ  Researchers expect the United States to face subpopulation, attributing declining birth rates and economic crises

“We are encouraged by the growing momentum throughout and after the holiday season,” CEO Erik Nordstrom said in a statement.

The company continues to expect a profitable fourth quarter, but said it continues to face pressure from increased shipping surcharges in its growing e-commerce business.

Nordstrom is expected to host a virtual investor event on February 4 and will release its fourth quarter results on March 2.

Clothing retailer Urban Outfitters reported disappointing holiday sales on Tuesday due to lower store traffic due to the Covid pandemic. While big box retailer Target said Wednesday that same-store sales rose more than 17% during the holidays, boosted by online gains. Non-mall retailers, like Target, Best Buy, and Walmart, have performed significantly better than mall-based businesses.

ALSO READ  2021 will be a year of recovery: here are 4 key tech strategies to shape the new year

Nordstrom shares have fallen about 10% in the past 12 months. The company has a market value of nearly $ 6 billion.

Read the full Nordstrom press release.

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here