- Prachi Singh |
Nordstrom, Inc. reported loss per diluted share of 1.62 dollars, while the company’s net sales decreased 53 percent from last year, reflecting temporary store closures for approximately 50 percent of days during the quarter due to Covid-19, in addition to an approximately 10-percentage point timing impact from the Nordstrom anniversary sale shifting from the second quarter to the third quarter.
“At the onset of the pandemic, we focused on protecting and enhancing liquidity, and we successfully executed on these plans,” said Erik Nordstrom, Chief Executive Officer of Nordstrom in a statement, adding, “We further strengthened our balance sheet with liquidity of 1.3 billion dollars and generated operating cash flow of more than 185 million dollars. We are now pivoting to prioritize market share gains and profitable growth as we advance our strategies.”
Highlights of Nordstrom’s Q2 performance
Second quarter net loss was 255 million dollars compared to net earnings of 141 million dollars during the same period in fiscal 2019. The company said, losses before interest and taxes were 370 million dollars compared to EBIT of 216 million dollars during the same period in fiscal 2019 primarily due to lower sales volume from temporary store closures in response to Covid-19.
In full-price, net sales decreased 58 percent, while excluding the anniversary sale event shift impact, full-price sales decreased in the mid-forties percent range. Off-Price net sales decreased 43 percent compared with the same period in fiscal 2019. The company added that top performing merchandise categories included home, kidswear, accessories, beauty and active in both full-price and off-price.
Total company digital sales decreased 5 percent, while excluding the anniversary sale event shift impact, digital sales increased approximately 20 percent in the second quarter and in the mid-teens range on a year-to-date basis.
Gross profit, as a percentage of net sales, was 21 percent, decreasing from 35 percent for the same period in fiscal 2019.
Picture:Nordstrom press room