Nordstrom (JWN) shares are down as retailer says holiday sales are down 22%

A person entered a Nordstrom store open for business as New York City moved into the second phase of reopening after restrictions imposed to curb the coronavirus pandemic on June 29, 2020 in New York, New York.

Rob Kim | Getty Images

Nordstrom reported a 22% drop in sales for the nine-week period ending January 2 on Wednesday, as the supermarket chain struggled to lure shoppers to its stores to buy clothes, shoes and holiday gifts.

Its shares were down more than 2% in post-close trading.

Nordstrom said its digital sales over the holiday period grew 23% from 2019 levels, and accounted for 54% of all sales, compared to 34% a year ago. The company added that more than 30% of customers’ online orders were fulfilled through its stores.

Nordstrom said the double-digit sales drop is in line with the expectations it set for the fourth quarter.

“We’ve been encouraged by the increased momentum throughout and after the holiday season,” Chief Executive Eric Nordstrom said in a statement.

The company is still expecting a profitable fourth quarter, but said it was still facing pressure from increased freight charges in its growing e-commerce business.

Nordstrom is due to hold a virtual investor event on February 4, and will announce its fourth-quarter results on March 2.

On Tuesday, retail clothing company Urban Outfitters reported Holiday sales are disappointing Due to the decrease in store traffic due to Coronavirus disease pandemic. While major retailers were launched on Wednesday He said sales of the same stores were up by more than 17% over the holidays. Boosted by gains online. Retailers outside of the malls, such as Target, Best Buy, and Walmart, performed largely better than malls.

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Nordstrom shares are down about 10% in the past 12 months. The company has a market value of approximately $ 6 billion.

Read the full press release from Nordstrom.

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