Nordstrom's net loss in the first quarter reached $166 million, and its losses exceeded expectations

Nordstrom's first-quarter net loss hits $166 million

In the first quarter ending May 1, 2021, Nordstrom's net sales increased 44% to US$2.921 billion from US$2.02 billion in the same period of 2020, and decreased 13% from the same period of fiscal 2019 ; its net loss reached US$166 million, exceeding market expectations.

Net sales for the Nordstrom brand increased 37% to $1.85 billion from $1.35 billion in the same period of fiscal 2020, down 13% from the same period in 2019. Nordstrom Rack net sales increased 59% to $1.06 billion from $669 million in the first quarter of fiscal 2020, down 13% from the first quarter of fiscal 2019.

The company said sales trends reflected broad-based improvements across Nordstrom and Nordstrom Rack , in stores and online, as well as across regions and merchandise categories. During the quarter, Nordstrom expanded its go-to-market strategy to its top 20 markets, which account for approximately 75% of sales.

Digital sales up 23% in Q1

In terms of digital sales, Nordstrom 's digital sales in the first quarter increased by 23% compared with the same period in fiscal 2020 and 28% compared with the same period in fiscal 2019. This means that digital sales accounted for nearly half of total sales in the quarter.

The categories that drove its sales growth were improved trends in categories such as apparel , handbags , sunglasses and swimwear, as well as continued good performance in the home , sports , designer and beauty categories. Sales through digital platforms can be directed by customers themselves or facilitated by sales staff using virtual styling or sales tools.

Nordstrom said increased customer selection at home and in children's activity areas drove sales up 37% over the first quarter of 2019 and that it will continue to enhance the digital experience to drive strong sales growth in its digital business.

Nordstrom 's CEO said it is building a digital catalog with product recommendations and adding in-store events , and is also working with suppliers to speed up product receipt , balance inventory levels with sales, and manage receipt volumes to mitigate potential supply chain disruptions over time.

USA

Nordstrom

First quarter report