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Business

Nordstrom's Q3 sales drop 16 percent

By Prachi Singh

25 Nov 2020

Nordstrom, Inc. has announced that its third quarter results reflected sequential improvement in sales and earnings relative to the prior quarter. The company generated EBIT of more than 100 million dollars, supported by improved merchandise margin trends and benefits from resetting its cost structure. Earnings per diluted share were 34 cents, while the company’s net sales decreased 16 percent from last year and included a positive impact of approximately 10-percentage points due to the shift of the Nordstrom Anniversary Sale from the second quarter to the third quarter this year.

“Our ability to significantly strengthen our financial flexibility early in the pandemic was key to delivering operating profitability of more than 100 million dollars and cash flow of more than 150 million dollars in the third quarter,” said Erik Nordstrom, Chief Executive Officer of Nordstrom, Inc. in a statement, adding, “We also unlocked new ways to better serve customers on their terms with greater convenience and connection, including expansion of our online order pickup services to nearly 350 locations across both Nordstrom and Nordstrom Racks.”

The company added that in Nordstrom full-price business, net sales decreased 7 percent and excluding the Anniversary Sale event shift impact, sales decreased in the mid-twenties percent range. In Nordstrom Rack off-price business, net sales decreased 32 percent compared with the same period in fiscal 2019. Digital sales of 1.6 billion dollars represented 54 percent of total sales and increased 37 percent, while excluding the Anniversary Sale event shift impact, digital sales increased in the mid-teens percent range in the third quarter. Gross profit, as a percentage of net sales of 32.8 percent decreased 150 basis points from the same period in fiscal.

Picture:Nordstrom press room