A Nordstrom retailer in Irvine, California.
Scott Mlyn | CNBC
Nordstrom on Tuesday reported fourth-quarter gross sales and earnings that topped analysts’ estimates, due to stronger shopper demand on-line and development at its off-price Nordstrom Rack enterprise.
But the corporate cautioned that it has been not too long ago impacted by shipping delays, which held up a few of its vacation merchandise from attending to cabinets and stockrooms on time. Nordstrom stated it’s working to promote by that inventory, most of which is nonseasonal, throughout its fiscal first quarter. It stated it ought to be again to regular inventory ranges by the second quarter.
“Heading into 2021, we’re taking steps to improve our inventory position,” CEO Erik Nordstrom stated in an announcement.
The retailer’s shares have been falling round 3% in after-hours buying and selling.
Here’s how Nordstrom did for the quarter ended Jan. 30 in contrast with what analysts have been anticipating, utilizing Refinitiv knowledge:
- Earnings per share: 21 cents vs. 14 cents anticipated
- Revenue: $3.65 billion vs. $3.60 billion anticipated
Nordstrom’s internet revenue shrank to $33 million, or 21 cents per share, from $193 million, or $1.23 a share, a 12 months earlier. That got here in higher than the 14 cents per share that analysts have been anticipating, in accordance with a Refinitiv survey.
Total income fell practically 20% to $3.65 billion from $4.54 billion a 12 months earlier. That got here in forward of a forecast for $3.60 billion.
Nordstrom stated its digital gross sales swelled 24% from a 12 months earlier and represented 54% of its whole enterprise in the course of the fourth quarter.
While the division retailer operator says the timing of buyer demand recovering from pandemic lows stays unsure, it’s nonetheless calling for fiscal 2021 gross sales to develop greater than 25%. Analysts had been calling for year-over-year income development of 26%.
E-commerce, meantime, is predicted to characterize about 50% of gross sales this 12 months. Nordstrom not too long ago outlined this forecast at a digital investor day, the place it stated it additionally plans to speculate extra in rising the Nordstrom Rack enterprise on-line. This outlook assumes that Nordstrom’s shops stay open in the course of the 12 months, the corporate stated.
Nordstrom is not the one retailer that faces shipping headwinds. Backlogged ports within the U.S. and heightened shipping prices proceed to hit companies that promote all the things from attire and footwear, to home equipment, to at-home health gear.
As buyers do return to shops, the persisting downside may make it much more tough for retailers to plan their inventories and hold cabinets chock-full of products.