A person enters the Nordstrom store open for business while New York City enters phase 2 of reopening following restrictions imposed to reduce the coronavirus pandemic on June 29, 2020 in New York, New York.
Rob Kim | Getty Images
Nordstrom on Wednesday reported a 22% drop in sales for the nine-week period ended January 2, as the department store chain struggled to get shoppers into its clothing, footwear and holiday gift shops.
Its shares fell by more than 2% when trading after the program.
Nordstrom said its digital holiday sales rose 23% from 2019 and accounted for 54% of total sales, up from 34% a year ago. And more than 30% of customers’ online orders have been filled by its stores, the company added.
The decline in double-digit sales was in line with expectations for the fourth quarter, Nordstrom said.
“We are encouraged by the growing momentum during and after the holiday season,” CEO Erik Nordstrom said in a statement.
The company continues to expect a profitable fourth quarter, but said it is still facing pressures due to increased shipping fees to its growing e-commerce business.
Nordstrom is set to host a virtual investor event on February 4th and will report 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 retailer Target on Wednesday said that sales in the same store increased by more than 17% during the holidays, boosted by online earnings. Retailers outside of malls, such as Target, Best Buy and Walmart, far outperformed mall companies.
Nordstrom shares have fallen about 10% in the last 12 months. The company has a market value of almost 6 billion dollars.
Read the full press release from Nordstrom.