US fashion retailer Nordstrom clocks triple digit growth in Q2

25 Aug '21

2 min read

Pic: Nordstrom

Nordstrom, a US-based leading fashion retailer, has reported 101 per cent sales jump to $3.5 billion in second quarter (Q2) of FY21 ended on July 31, 2021, against $1.8 billion in the same period of last fiscal. The improvement in sales trends at Nordstrom and Nordstrom Rack coupled with strong anniversary sales encouraged the overall performance.

“Our second quarter results demonstrate the strength of our two brands, the power of our ‘closer to you’ strategy and the success of our iconic Anniversary Sale,” Erik Nordstrom, chief executive officer of Nordstrom, said in a press release. “We capitalised on improving customer demand with focused execution, healthy inventory sell-through and continued expense management to deliver strong quarterly results.”

Sales for Nordstrom brand escalated 127 per cent to $2.4 billion over prior year, however slipped 5 per cent against 2019 as the timing shift of anniversary sale had a negative impact on Nordstrom’s overall Q2 sales. While for Nordstrom Rack brand, sales expanded 61 per cent to $1.1 billion against last year and decreased 8 per cent from 2019.

Moreover, the company said that sales from its anniversary event grew 1 per cent from 2019, which included the final week of the event which fell in Q3.

“A compelling merchandise assortment, combined with new and differentiated services and experiences, contributed to strengthening customer engagement and improving financial results during our anniversary sale,” Pete Nordstrom, president and chief brand officer of Nordstrom, said in the release.

Digital sales surged 30 per cent during Q2 FY21, representing 40 per cent of the total sales. The American department store company’s net earnings rose to $80 million compared to loss of $255 million in last year.

“We remain focused on executing our strategy to win in our most important markets, broaden the reach of Nordstrom Rack and increase our digital velocity, and are well-positioned for continued progress toward our long-term strategic and financial goals as we look ahead to the second half of the year,” Nordstrom added.

Based on the strong first half, Nordstrom has raised its outlook for fiscal 2021 and expects sales to rise 35 per cent against previous estimates of 25 per cent.

Fibre2Fashion News Desk (JL)

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