Nordstrom posts 40 percent drop in Q1 sales
Prachi Singh| Friday, May 29 2020
Nordstrom, Inc. reported that its first quarter net sales decreased 40 percent to 2,026 million dollars from last year. The company said in a statement that loss per diluted share was 3.33 dollars, which included charges of 1.10 dollars associated with the impact of Covid-19.
Nordstrom Q1 sales hit
“We successfully strengthened our financial flexibility by increasing liquidity, lowering inventory by more than 25 percent from last year and significantly reducing our cash burn by more than 40 percent from March into April,” said Erik Nordstrom, chief executive officer of Nordstrom, adding, “We’re entering the second quarter in a position of strength, adding to our confidence that we have sufficient liquidity to successfully execute our strategy in 2020 and over the longer term.”
The company added that Nordstrom continued its momentum from the second half of 2019 with positive sales growth in February and ongoing growth of its 5 billion dollars e-commerce business. However, the company temporarily closed stores on March 17 due to Covid-19, which had a material impact on financial results as stores made up two-thirds of its business in 2019.