Nordstrom, Inc. reported earnings per diluted share for the fourth quarter of 21 cents, which reflected an income tax benefit related to the CARES Act. The company said, net sales decreased 20 percent, which improved sequentially by 600 basis points relative to the third quarter, after adjusting for a shift of the Nordstrom Anniversary Sale.
“We’re proud of our team’s efforts to generate another quarter of improved sales trends and positive operating cash flow in what remains an uncertain environment. Heading into 2021, we’re taking steps to improve our inventory position,” said Erik Nordstrom, Chief Executive Officer of Nordstrom, Inc.
Highlights of Nordstrom’s Q4 performance
The company’s digital sales increased 24 percent compared with the same period in fiscal 2019 and represented 54 percent of the business. Top performing merchandise categories included home, active and beauty. For the Nordstrom brand, net sales decreased 19 percent and for the Nordstrom Rack brand, net sales decreased 23 percent.
The company added that gross profit, as a percentage of net sales, of 33 percent decreased 160 basis points compared with the same period in fiscal 2019. Earnings before interest and taxes (EBIT) was 30 million dollars or 0.8 percent of net sales, compared with 299 million dollars or 6.7 percent of net sales for the same period in fiscal 2019. Net earnings were 33 million dollars compared with 193 million dollars during the same period in fiscal 2019.
Nordstrom expects 25 percent sales growth for FY21
For fiscal 2021, which assume stores remain open during the year, Nordstrom expects revenue, including retail sales and credit card revenues, to grow more than 25 percent, with digital representing approximately 50 percent of sales. EBIT margin is expected to be approximately 3 percent of sales and for the first half, EBIT is expected to be approximately breakeven, reflecting approximately 45 percent of total year sales.
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