Negative Q1 for Nordstrom

By: Miguel A. Rodriguez

09:45, 14 September 2020

The pandemic wiped off 40% of Nordstrom’s sales.

Yesterday, one of the biggest retail department stores in America posted its first-quarter financial report, reporting a fall in sales of 40%.

Its revenue fell to $2.12 billion from $3.44 billion from the same time last year. The sales from the physical stores fell by 36%. The digital sales increased by 5%, reaching $1.1 billion. The loss per share was $3.33. The company ended the quarter with $1.4 billion in cash. 

The first quarter net sales were down 34% compared to the same time last year. 

The department store stated earlier this month that 16 of its stores would be closed permanently.  Overall, the chain will have 116 full operational stores.

According to it, 40% of its stores resumed their activity after they got closed in March. By the end of June, all stores are expected to be open again.

Store-wise, Nordstrom is one of the luckiest to close only 16 stores, whereas Macy’s will shut down more than 125 in the next three years. Until now Macy’s has 50 fully operational stores. 

Nordstrom stock went up 1% after-hours after it dropped almost 8%. Since the start of the year until now, its stock fell more than 56%.

Market competitor, Macy’s, reported this week the most significant gain on record; the stock price went up 19.6% during regular trading hours. This year the stock dropped by 56%, while USA500 lost 7.4%.

Sources: cnbc.com, prnewswire.com


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.