Nordstrom (JWN) shares fall because the retailer says Christmas gross sales are down 22%.
A person walks into the Nordstrom store, which is open for business, as New York City re-opens Phase 2 after restrictions to contain the coronavirus pandemic were imposed in New York, New York on June 29, 2020.
Rob Kim | Getty Images
Nordstrom on Wednesday reported a 22% drop in sales for the nine-week period ending Jan. 2 as the department store chain struggled to get shoppers into their stores for clothing, shoes and Christmas gifts.
Shares fell more than 3% in after-hours trading.
According to Nordstrom, digital sales in the holiday season increased 23% from 2019 and accounted for 54% of total sales, compared to 34% a year ago. And more than 30% of customers’ online orders came from the stores, the company added.
The double-digit drop in sales was in line with expectations for the fourth quarter, Nordstrom said.
“We are encouraged by the increasing momentum during and after the Christmas season,” CEO Erik Nordstrom said in a statement.
The company continues to expect a profitable fourth quarter of the fiscal year, but continues to face the pressure from increased shipping surcharges in its growing e-commerce business.
Nordstrom will host a virtual investor event on February 4th and will announce fourth quarter results on March 2nd.
On Tuesday, clothing retailer Urban Outfitters reported disappointing Christmas sales due to the decline in store traffic due to the Covid pandemic. While big box retailer Target said on Wednesday sales in the same store rose more than 17% during the holidays, fueled by online growth. Off-mall retailers like Target, Best Buy, and Walmart have for the most part outperformed mall-based companies.
Nordstrom stocks are down about 10% over the past 12 months. The company has a market value of nearly $ 6 billion.
Read the full Nordstrom press release.