The home department gave Nordstrom a lift during a challenging second quarter when sales dropped due to the temporary store closures associated with the coronavirus pandemic.
Net loss for the quarter was $255 million, or $1.62 per diluted share, versus net earnings of $141 million, or 90 cents per diluted share, in the year-previous period. Net loss was deeper than the $1.50 per diluted share in a MarketBeat-published analyst consensus estimate for the quarter.
Net sales were $1.78 billion and net revenues, including those from credit card operations, were $1.86 billion versus $3.78 billion and $3.87 billion, respectively, in the year-past quarter.
The loss per diluted share of $1.62 included charges of eight cents associated with the impact of COVID-19, the company pointed out. The net sales decrease of 53% in the quarter year over year reflected temporary store closures for about half of the days during the period due to COVID-19 restrictions in addition to an approximately 10 percentage point timing impact from the Nordstrom Anniversary Sale shifting from the second quarter to the third quarter.
In full-price department stores, net sales decreased 58% from the year-earlier quarter. Off-price net sales decreased 43% compared with the fiscal 2019 period. Total company digital sales slipped 5% in the quarter year over year. The company’s e-commerce business continued to experience growth of more than 50% with new Nordstrom customers, the company added.
In terms of merchandising categories, top performers were home, kidswear, accessories, beauty and active in both full- and off-price stores.
“At the onset of the pandemic, we focused on protecting and enhancing liquidity, and we successfully executed on these plans,” said Erik Nordstrom, the retailer’s CEO. “Thanks to our team’s efforts during the second quarter we further strengthened our balance sheet with liquidity of $1.3 billion and generated operating cash flow of more than $185 million. We are now pivoting to prioritize market share gains and profitable growth as we advance our strategies.”
Pete Nordstrom, the retailer’s president and chief brand officer, added, “We’re confident that we can improve sales trends in the second half of the year and beyond. Our inventories are current and in-line, and we’re focused on amplifying relevant categories, brands and trends to meet customers’ changing preferences.”