Nordstrom confirms improved sales trends in Q1

Nordstrom, Inc. reported a pre-tax loss of 85 million dollars and loss per diluted share of 1.05 dollars. Net sales for the quarter increased 44 percent compared to first quarter of fiscal 2020 and decreased 13 percent from the same period in fiscal 2019.

“We are encouraged by sales trends both in our stores and our digital business, supported by an improving consumer environment and strong execution,” said Erik Nordstrom, chief executive officer of Nordstrom, Inc.

Highlights of Nordstrom’s first quarter

For the Nordstrom brand, net sales increased 37 percent compared with the same period in fiscal 2020, and decreased 13 percent compared with the same period in fiscal 2019.

For the Nordstrom Rack brand, net sales increased 59 percent compared with the same period in fiscal 2020, and decreased 13 percent compared with the same period in fiscal 2019.

The company’s digital sales increased 23 percent compared with the same period in fiscal 2020 and increased 28 percent compared with the same period in fiscal 2019. Digital sales represented 46 percent of total sales during the quarter.

Gross profit of 31 percent increased approximately 2,000 basis points compared with the same period in fiscal 2020 and decreased 260 basis points compared with the same period in fiscal 2019.

Nordstrom reaffirms FY21 outlook

Nordstrom continues to expect revenue, including retail sales and credit card revenues to grow more than 25 percent.

EBIT margin is expected to be approximately 3 percent of sales, while for the first half of the year, EBIT is expected to be breakeven, reflecting approximately 45 percent of total year sales.