A person walks into the Nordstrom store open for business while the city of New York moves on to Phase 2 of reopening after restrictions were imposed to curb the coronavirus pandemic on June 29, 2020 in New York, New York.
Rob Kim | Getty Images
Nordstrom reported a 22% decline in sales for the nine-week period ending on January 2 on Wednesday as the retail chain struggled to find shoppers in stores for clothing, shoes and holiday gifts.
Its shares fell more than 2% in the aftermarket.
Nordstrom said its digital sales grew by 23% during the holiday season from 2019 levels and 54% of total sales compared to 34% a year ago. And more than 30% of customers’ online orders were fulfilled by the stores, the company added.
The double-digit sales decline was in line with expectations for the fourth quarter, Nordstrom said.
“We are encouraged by the growing momentum during and after the holiday season,” CEO Erik Nordstrom said in a statement.
The company still expects a profitable fourth quarter, but said it is still under pressure due to increased shipping surcharge on its growing e-commerce business.
Nordstrom is holding a virtual investor event on 4 February and will report its results in the fourth quarter on 2 March.
Clothing retailer Urban Outfitters reported disappointing holiday sales on Tuesday due to declines in store traffic due to the Covid pandemic. While wholesale retailer Target said on Wednesday that sales of the same stores rose by more than 17% during the holiday season. Retailers outside malls, such as Target, Best Buy and Walmart, outperform companies in malls for the most part.
Nordstrom shares have fallen by about 10% over the past 12 months. The company has a market value of almost $ 6 billion.
Read Nordstrom’s full press release.