The main headlines of Fox Business Flash are here. Check out what is clicking on FoxBusiness.com.
Nordstrom Inc. on Tuesday reported better-than-expected results for the holiday quarter, aided by an increase in e-commerce sales and growth in its off-price business, Rack.
Pandemic-induced declines in household income and high unemployment rates have led to an increase in demand for affordable clothing, which has boosted Rack business to Nordstrom, which has also benefited from a greater shift to online shopping.
Sales at Nordstrom Rack decreased 23% from the previous year, but were better than the 32% drop from the previous quarter, while digital sales of around $ 2 billion represented 54% of the retailer’s business.
NORDSTROM CLOSES 16 STORES IN CORONAVIRUS FALLOUT
The retailer said that overall trends improved sequentially over the quarter, with improvements in Nordstrom and Rack.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| JWN | NORDSTROM | 37.58 | -0.39 | -1.03% |
Nordstrom, like other retailers, has invested heavily in e-commerce, as consumers start shopping online after the health crisis.
The retailer reiterated its revenue forecast and said it would grow more than 25% this year, with digital accounting for half of sales and its plans to increase the items it offers to more than 1.5 million, from around 300,000.
GET FOX BUSINESS ON THE MOVE BY CLICKING HERE
“There is no denying that the results of the fourth quarter (Nordstrom) were impacted, as fewer consumers go to offices and formal events,” said Hilding Anderson, head of retail strategy at consultancy Publicis Sapient.
“We expect clothing sales to recover in the second half of 2021, as the vaccine launch continues and more consumers begin to travel and resume other personal events.”
GET FOX BUSINESS ON THE MOVE BY CLICKING HERE
Total revenue fell 19.7%, to $ 3.65 billion in the fourth quarter ended January 30. Wall Street predicted $ 3.60 billion, according to analysts consulted by Refinitiv IBES.
Net revenue fell 83% to $ 33 million, largely hampered by higher reductions and freight and labor expenses induced by COVID-19 during the holiday season.
Per share, he earned 21 cents, well above the 14 cents estimate.