SEATTLE, Jan. 13, 2021 /PRNewswire/ -- Nordstrom,
Inc. (NYSE: JWN) today announced a net sales decline of
approximately 22 percent for the nine-week holiday period ended
January 2, 2021, compared with the
nine weeks ended January 4, 2020.
Combined November and December sales were in-line with Company
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.
During the holiday season, Nordstrom continued to leverage its
digital and physical assets to provide a unique breadth of
merchandise selection across brands, price points and styles and
convenient shopping experiences for customers:
- 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.
- Approximately 11 percent of Nordstrom.com orders were picked up
in-store, which accelerated to more than 20 percent during the week
preceding Christmas.
- Approximately 9 percent of Nordstromrack.com orders were picked
up in-store, which was enabled by the integration of Nordstrom Rack store and online inventory in
October.
- More than 30 percent of online orders were fulfilled from
Nordstrom and Nordstrom Rack stores.
- As a result of expanded gifting selection, gifting items made
up 67 percent of sales, an increase of 600 basis points from the
prior year.
"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. By leveraging order pickup and store fulfillment
capabilities across our two brands of Nordstrom and Nordstrom Rack,
we're seeing benefits to our customers as well as to our business,"
said Erik Nordstrom, chief executive
officer of Nordstrom, Inc. "We're deeply appreciative of our team's
focus on providing customers with a strong holiday offering during
these challenging times."
As a result of its holiday performance, the Company continues to
expect to deliver positive earnings before interest and taxes
(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. Planned shipping surcharges and premium
pay related to the holiday season also contributed to the
year-over-year EBIT margin deleverage.
The Company is scheduled to hold its virtual investor event on
February 4, 2021, and report its
fourth quarter and full-year 2020 financial results on March 2, 2021, in which additional detail on the
Company's financial performance will be provided.
ABOUT NORDSTROM
Nordstrom, Inc. is a leading fashion
retailer based in the U.S. Founded in 1901 as a shoe store in
Seattle, today Nordstrom operates
358 stores in the U.S. and Canada,
including 100 Nordstrom stores; 249 Nordstrom Rack stores; two
clearance stores; and seven Nordstrom Local service hubs.
Additionally, customers are served online through Nordstrom.com,
Nordstrom.ca, Nordstromrack.com, HauteLook.com and TrunkClub.com.
Nordstrom, Inc.'s common stock is publicly traded on the NYSE under
the symbol JWN.
Certain statements in this news release contain or may
suggest "forward-looking" information (as defined in the Private
Securities Litigation Reform Act of 1995) that involve risks and
uncertainties. The words "will," "may," "designed to," "outlook,"
"believes," "should," "targets," "anticipates," "assumptions,"
"plans," "expects," or "expectations," "intends," "estimates,"
"forecasts," "guidance" and similar expressions identify certain of
these forward-looking statements. The Company also may provide
forward-looking statements in oral statements or other written
materials released to the public. All statements contained or
incorporated in this news release or in any other public statements
that address such future events or expectations are forward-looking
statements. Important factors that could cause actual results to
differ materially from these forward-looking statements are
discussed in the Company's Annual Report on Form 10-K for the
fiscal year ended February 1, 2020 and its Form
10-Qs for the fiscal quarters ended May 2,
2020, August 1, 2020 and
October 31, 2020. These
forward-looking statements are not guarantees of future performance
and peak only as of the date made, and, except as required by law,
the Company undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events, new
information or future circumstances.
INVESTOR
CONTACT:
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Trina
Schurman
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Nordstrom,
Inc.
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Invrelations@Nordstrom.com
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MEDIA
CONTACT:
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Gigi Ganatra
Duff
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Nordstrom,
Inc.
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NordstromPR@Nordstrom.com
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SOURCE Nordstrom, Inc.