Nordstrom (JWN) shares drop as retailer says holiday sales tumbled 22%

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

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

Nordstrom mentioned its digital gross sales throughout the vacation interval grew 23% from 2019 ranges, and represented 54% of complete gross sales, in contrast with 34% a 12 months in the past. And greater than 30% of consumers’ on-line orders have 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 mentioned.

“We’re inspired by the growing momentum all through and following the vacation season,” CEO Erik Nordstrom mentioned in an announcement.

The corporate continues to count on a worthwhile fourth quarter, nevertheless it mentioned it nonetheless faces pressures as a consequence of heightened transport 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 City Outfitters reported disappointing vacation gross sales as a consequence of declines in retailer site visitors due to the Covid pandemic. Whereas big-box retailer Goal on Wednesday mentioned same-store gross sales climbed greater than 17% over the vacations, boosted by positive factors on-line. Off-mall retailers, like Goal, Finest Purchase and Walmart, have largely been performing higher than mall-based corporations.

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

Learn the complete press launch from Nordstrom.

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