One person enters the Nordstrom store open for business while New York City enters Phase 2 reopening following restrictions imposed to curb the coronavirus pandemic on June 29, 2020 in New York City, New York.
Rob Kim | Getty Images
Nordstrom reported a 22% drop in sales on Wednesday during the nine-week period ended Jan. 2 as the department store chain struggled to get shoppers into its clothing, footwear and holiday gift shops.
Its shares fell more than 2% in off-hours trading.
Nordstrom said its digital sales during the holiday period grew 23% from 2019 levels and accounted for 54% of total sales, compared to 34% the previous year. And more than 30 percent of customers’ online orders were filled by their stores, the company added.
Nordstrom stated that the fall in double-digit sales was in line with the expectations it had set for the fourth quarter.
“We are encouraged by the growing momentum during and after the holiday season,” CEO Erik Nordstrom said in a statement.
The company is still waiting for a profitable fourth quarter, but said it is still facing pressures due to higher surcharges sent into its growing e-commerce business.
Nordstrom will host a virtual investor event on February 4th and will report on its fourth quarter results on March 2nd.
On Tuesday, clothing retailer Urban Outfitters reported disappointing holiday sales due to declining store traffic due to the Covid pandemic. While Target, the big box retailer, said Wednesday that sales at the same stores rose more than 17% over the holidays, driven by online earnings. Retailers outside of malls, such as Target, Best Buy and Walmart, have fared better than mall companies.
Shares of Nordstrom have fallen about 10% in the last twelve months. The company has a market value of about $ 6 billion.
Read the full Nordstrom press release.