FILE PHOTO: The firm emblem for Nordstrom Inc, is displayed on a display screen on the New York Stock Exchange (NYSE) in New York, U.S., October 22, 2019. REUTERS/Brendan McDermid
(Reuters) – Upscale division store chain Nordstrom Inc (JWN.N) on Thursday reported a nearly 40% stoop in quarterly sales, as lockdowns to comprise the COVID-19 pandemic shut shops.
Measures to comprise the coronavirus outbreak have weighed closely on retailers, with J.C. Penney (JCP.N), J.Crew, Neiman Marcus and Stage Stores all having just lately filed for chapter.
Seattle-based Nordstrom stated on-line sales rose 5% to $1.1 billion in its first quarter ended May 2. The retailer has strived to scale back stock, minimize prices and sharpen its advertising and marketing technique.
“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,” Chief Executive Erik Nordstrom stated in an announcement. “We’re entering the second quarter in a position of strength.”
Nordstrom stated roughly 40% of its shops have reopened, although they’re in smaller markets. It plans to reopen its total fleet of outlets by the top of June, together with in main markets California and New York.
Total web sales within the first quarter dropped to $2.03 billion from $three.35 billion a 12 months earlier.
It reported a web lack of $521 million, or $three.33 per share, in contrast with a revenue of $37 million, or 23 cents per share, a 12 months earlier.
The firm stated store closures and restructuring led to a $173 million cost. Earlier this month, Nordstrom introduced it could shut 16 of its 116 full-line U.S. shops.
Earlier on Thursday, America’s high greenback store chains, Dollar General Corp (DG.N) and Dollar Tree Inc (DLTR.O), beat revenue estimates and stated they’d profit from demand for inexpensive groceries and family necessities in coming months as rising unemployment threatens to spur a deep recession.
Reporting by Nivedita Balu in Bengaluru and Melissa Fares in New York; Editing by Lisa Shumaker and Leslie Adler