- Prachi Singh |
Nordstrom, Inc. has reported a net sales decline of approximately 22 percent for the nine-week holiday period ended January 2, 2021. The company said, combined November and December sales were in-line with its expectations for a decrease in the low-twenties percentage range for the fourth quarter. Sales trends increased sequentially by approximately 500 basis points relative to the third quarter, after adjusting for the shift of the Nordstrom Anniversary Sale from the second quarter to the third quarter in fiscal 2020.
“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 in a statement.
The company added that December sales across the Nordstrom and Nordstrom Rack brands reflected sequential improvement from November with momentum continuing into January. Digital sales grew 23 percent over last year and represented 54 percent of total sales compared with 34 percent from the same period in fiscal 2019. As a result of expanded gifting selection, Nordstrom further said, gifting items made up 67 percent of sales, an increase of 600 basis points from the prior year.
As a result of its holiday performance, the company continues to expect to deliver positive EBIT and operating cash flow for the fourth quarter. In addition, the company expects fourth quarter EBIT margin to deleverage by approximately 500 basis points relative to the prior year primarily due to lower sales volume.
Picture:Nordstrom press room