American fashion retailer Nordstrom's sales expand 18% in Aug-Oct qtr

01 Dec '21

2 min read

Pic: Nordstrom

The temporary shifting of Anniversary sales in the third quarter (Q3) of FY21 has helped Nordstrom, a US-based leading fashion retailer, to achieve a 17.7 per cent sales jump to $3.5 billion against the sales of $3.0 billion in the same period of previous fiscal. Net income for the three-month period expanded to $64 million (Q3 FY20: $53 million).

“We have long benefited from a commitment to customer service, new and compelling merchandise, innovative brand partnerships and interconnected digital and physical assets. However, we need to move faster to capitalise on these strengths and profitably grow market share,” Erik Nordstrom, chief executive officer of Nordstrom, said in a press release.

“We're taking action to improve performance at Nordstrom Rack, including optimising inventory levels, better balancing price points and increasing brand awareness. Work is also underway to improve merchandise margin across the company and ensure we have the visibility and flexibility we need to serve our customers seamlessly, despite global supply chain challenges,” Erik continued.

Nordstrom brand’s sales during the quarter ended on October 30, 2021, surged by 10.5 per cent to $2.3 billion over last year. While for Nordstrom Rack brand reported a 35.2 per cent acceleration in sales to $1.2 billion over Q3 FY20.

The American luxury department store’s earnings before interest and income taxes improved to $127 million. However, digital sales during the third quarter decreased by 12 per cent over last year but climbed 20 per cent over pre-pandemic period.

“Taking lessons learned from this year's Anniversary Sale, the team has combined the art of merchandising with data-driven insights to put the right assortment in the right place at the right time,” Pete Nordstrom, president and chief brand officer of Nordstrom, said in the release.

“For the holiday season, we are excited about our plans to use our integrated network of stores and digital platforms to showcase holiday dressing, decor and gift offerings, and provide festive experiences and convenient services that make shopping easy and enjoyable for our customers,” Pete concluded.

Nordstrom has reaffirmed its outlook for fiscal 2021 and continues to expect 35 per cent sales growth against FY20.

Fibre2Fashion News Desk (JL)

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