Nordstrom (NYSE: JWN) reported a net sales loss of 53% throughout its second quarter on Tuesday. Store closures amid the coronavirus pandemic severely affected the retailer, furthermore a timing mishap of its annual Anniversary sale also rocked its online sales. Nordstrom shares plummeted 6% during after hours trading.
Similar to many other department stores the pandemic completely severed foot traffic. With the country on lockdown, and thousands getting sick with the COVID-19 virus, shopping for upscale apparel was a low priority for many.
“We’re confident that we can improve sales trends in the second half of the year and beyond,” said Pete Nordstrom, president and chief brand officer of Nordstrom. Nevertheless, the retailer did not provide a third-quarter guidance.
He continued: “Our inventories are current and in-line, and we’re focused on amplifying relevant categories, brands and trends to meet customers’ changing preferences.”
The company reported a loss of USD1.62 per share in comparison to the anticipated USD1.48 a share. Revenue totaled USD1.86 Billion, lower than the expected USD2.38 Billion.
Online sales experienced a 5% decrease after the chain decided to move its well known Anniversary Sale, typically done in July, to the third quarter. Aside from that inconvenience, the company says digital sales have risen 20% during the quarter.
According to Anne Bramman, Chief Financial Officer, Nordstrom is preparing for a “sequential and gradual improvement in sales, earnings and cash flow” within the second half of the year.
Stores are to be stocked with holiday gifts before Thanksgiving, according to Pete Nordstrom.
“We’ve had this long-held tradition that we don’t decorate our stores [until] after Thanksgiving … but that doesn’t mean that we shouldn’t be in a position of selling customers what they want, when they want it,” he said.
“As we emerge from this disruptive period, our ambition is for Nordstrom to be positioned as a retail winner by gaining market share and driving profitable growth,” CFO Bramman said.
Written by Rebecca Urena.
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