Here’s how the retailer did in its fiscal second quarter, compared to what analysts expected, based on Refinitiv data:
- Loss per share: $ 1.62 vs. an expected loss of $ 1.48
- Revenue: $ 1.86 billion against $ 2.38 billion expected
Nordstrom reported a net loss for the period ended Aug. 1 of $ 255 million, or $ 1.62 per share, compared to net income of $ 141 million, or 90 cents per share, a year ago. Analysts were asking for a loss of $ 1.48 per share.
Revenue, which includes credit card sales, fell to $ 1.86 billion from $ 3.87 billion a year ago, below the $ 2.38 billion estimated by analysts. Net sales fell 53% to $ 1.78 billion, from $ 3.78 billion a year earlier.
Nordstrom said its stores, including its discount Nordstrom Rack stores, were closed for about 50 percent of the days in the last quarter, pushing down overall results.
Net sales of its full-price stores were down 58% from a year ago, while its non-price businesses were down 43%.
Online sales fell 5%, largely because the department store chain moved its popular anniversary sale which typically takes place in July to the third quarter. Excluding this impact, the company said digital sales increased by around 20% during the period.
“We are confident that we can improve sales trends in the second half of the year and beyond,” President Pete Nordstrom said in a statement. The company does not offer any outlook for the remainder of the year at this time.
However, he said sales for his anniversary event, which kicked off to all customers on August 19, followed his internal expectations, “reflecting improving underlying trends from July.”
Earlier this year, Nordstrom announced the closure of 16 department stores as the Covid-19 crisis weighed on its business.
Four large department store chains – JC Penney, Neiman Marcus, Stage Stores and Lord & Taylor – filed for bankruptcy during the pandemic, with the category rocked by malls being less frequented by shoppers and more consumers sourcing from big box stores like Target and Walmart. Target and Walmart have reported impressive results in recent days, while mall-based businesses struggle to stay afloat.
Nordstrom stock is down about 62% this year, as it closed on Tuesday. The company has a market capitalization of $ 2.4 billion.
Find the full results press release here.