A person enters the Nordstrom store open for business as New York City enters Phase 2 reopening after restrictions imposed to contain the coronavirus pandemic on June 29, 2020 in New York, New York.
Rob Kim | Getty Images
Nordstrom on Wednesday reported a 22% drop in sales in the nine-week period ending January 2, as the department store chain struggled to get customers to enter its stores to buy clothes, shoes and gifts from Christmas.
Its shares fell more than 2% in after-hours trading.
Nordstrom said its digital sales during the holiday period grew 23% from 2019 levels and represented 54% of total sales, compared with 34% a year ago. And more than 30% of customers’ online orders have been fulfilled by their stores, the company added.
The double-digit decline in sales was in line with expectations set for the fourth quarter, Nordstrom said.
“We are encouraged by the growing momentum during and after the holiday season,” said CEO Erik Nordstrom in a statement.
The company continues to expect a profitable fourth quarter, but said it still faces pressure due to high shipping surcharges in its growing e-commerce business.
Nordstrom is due to hold a virtual event for investors on February 4 and will present its fourth quarter results on March 2.
On Tuesday, clothing retailer Urban Outfitters reported disappointing end-of-year sales due to drop in store traffic due to the Covid pandemic. While large retailer Target said on Wednesday that same-store sales increased more than 17% during the holiday, driven by online earnings. Retailers outside shopping malls, such as Target, Best Buy and Walmart, have performed much better than mall-based companies.
Nordstrom’s shares have fallen about 10% in the past 12 months. The company has a market capitalization of almost $ 6 billion.
Read the full Nordstrom press release.