On Tuesday, Nordstrom Inc reported better holiday quarter results than it expected. A rise in e-commerce sales and growth in its off-price business helped achieve this. The declines in household income and high unemployment rates induced by the Pandemic have spiked the demand for affordable clothing. This boosted Rack’s business for Nordstrom and also due to people shifting to online shopping.
From the previous year, sales at Nordstrom Rack have decreased by 23%. However, the last quarter’s 32% slump was not seen this quarter. Digital sales went up to $2 billion, accounting for 54% of the retailer’s business. With improvements in both Rack and Nordstrom, the overall trends have improved throughout the quarter.
Hilding Anderson, head of retail strategy at consulting firm Publicis Sapient, said, “There is no denying that their Nordstrom Q4 results were impacted, as fewer consumers go to offices and formal events. We expect apparel sales to rebound in the second half of 2021 as the vaccine rollout continues and more consumers begin to travel and resume other in-person events.”
According to analysts surveyed by Refinitiv IBES, Wall Street had forecasted a $3.60 billion revue fall. Nonetheless, the total revenue fell by 19.7% to $3.65 billion in the fourth quarter ended 30th January. On a per-share basis, the company earned 21 cents above the estimate of 14 cents.