A person walks into the Nordstrom store open for business as New York City enters Phase 2 of its reopening following restrictions imposed to curb the June 29, 2020 coronavirus pandemic in New York, New York.
Rob Kim | Getty Images
Nordstrom reported a 22% drop in sales on Wednesday for the nine-week period ending January 2, as the department store chain struggled to get customers to the stores for clothing, shoes and Christmas gifts.
Its shares fell more than 2% during out of hours trading.
Nordstrom said its holiday digital sales grew 23% from 2019 and represented 54% of total sales, up from 34% a year ago. And more than 30% of customers’ online orders were handled by the stores, the company added.
The double-digit sales decline was in line with expectations it had set for the fourth quarter, Nordstrom said.
“We are encouraged by the increasing momentum during and after the holiday season,” CEO Erik Nordstrom said in a statement.
The company continues to expect a profitable fourth quarter, but says it is still under pressure from increased shipping costs in its growing e-commerce business.
Nordstrom will host a virtual investor event on February 4 and will publish its fourth quarter results on March 2.
On Tuesday, clothing retailer Urban Outfitters reported disappointing Christmas sales as a result of reduced shopping traffic as a result of the Covid pandemic. While major retailer Target said on Wednesday that same-store sales are up more than 17% over the holiday season, boosted by online profits. Off-mall retailers, such as Target, Best Buy, and Walmart, largely outperform mall-based companies.
Nordstrom’s shares are down about 10% in the last 12 months. The company has a market value of nearly $ 6 billion.
Read the full Nordstrom press release.