US Markets
JWN

Nordstrom reports bigger-than-expected loss, sales plunge as pandemic hits

Credit: REUTERS/MIKE SEGAR

Nordstrom Inc reported a bigger-than-expected loss and a 53% fall in sales on Tuesday, as its stores were shut for about half of the reported quarter due to the COVID-19 pandemic, sending the department store chain's shares down about 7%.

Compares with estimates, adds shares, background

Aug 25 (Reuters) - Nordstrom Inc JWN.N reported a bigger-than-expected loss and a 53% fall in sales on Tuesday, as its stores were shut for about half of the reported quarter due to the COVID-19 pandemic, sending the department store chain's shares down about 7%.

Like many of its peers, Nordstrom was severely hit from a months-long closure of its stores across the United States and as shoppers steered away from the company's upscale apparel, including work clothing and designer dresses.

J.C. Penney, Neiman Marcus, Brooks Brothers and other retailers have filed for bankruptcy in the last several months.

Nordstrom was also hit as it moved its popular Anniversary Sale from the second to the third quarter, which also impacted its online sales that fell 5%.

The Seattle-based company posted net sales of $1.78 billion for the second quarter ended Aug. 1, compared with $3.78 billion, a year earlier.

Nordstrom reported a net loss of $255 million, or $1.62 per share, compared to a profit of $141 million, or 90 cents per share, a year earlier.

Analysts were expecting a loss of $1.48 per share, according to IBES data from Refinitiv.

(Reporting by Nivedita Balu in Bengaluru and Melissa Fares in New York; Editing by Vinay Dwivedi)

((Nivedita.Balu@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 4822/ Twitter: @niveditabalu;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

JWN

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More