Following the restrictions imposed in New York State on June 29, 2020 to contain the coronavirus pandemic, New York City entered the second phase of reopening, and one person walked into the Nordstrom store to open.
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Nordstrom reported on Wednesday that the department store’s sales fell by 22% in the nine weeks ending January 2 because the department store chain has been struggling to attract shoppers. Its store buys clothing, footwear and holiday gifts.
In after-hours trading, its stock price fell more than 2%.
Nordstrom said digital sales during the holiday period increased by 23% from 201
Nordstrom said the double-digit sales decline was in line with expectations for the fourth quarter.
CEO Erik Nordstrom (Erik Nordstrom) said in a statement: “We are encouraged by our growth momentum throughout the holiday and beyond.”
The company continues to expect profitability in the fourth quarter, but it said it is still under pressure due to increased shipping surcharges for its growing e-commerce business.
Nordstrom will hold a virtual investor event on February 4 and will report its fourth quarter results on March 2.
On Tuesday, clothing retailer Urban Outfitters reported disappointing holiday sales due to reduced store traffic due to the Covid pandemic. Large retailer Target said on Wednesday that, driven by online holidays, same-store sales increased by more than 17% during the holidays. Non-retail retailers such as Target, Best Buy and Walmart have largely outperformed shopping mall companies.
In the past 12 months, Nordstrom’s stock price has fallen by about 10%. The company’s market value is close to $6 billion.
Read Nordstrom’s full press release.