Nordstrom’s digital sales boost results
Seattle-based retailer Nordstrom posted a better-than-expected profit and revenue for the quarter buoyed by its digital performance.
The department store chain posted a 5.8 per cent increase in sales to $3.56 billion for the first quarter ending May 5 thanks in part to a Nordstrom Rewards event. Sales from the event accounted for 54 per cent of all purchases for the quarter.
Nordstrom’s comparable sales were at 0.6 per cent, falling short of analysts’ estimate which was at one per cent.
Digital sales, which includes the retailer’s online shopping and other tools like buy online, store pickup, store reserve and digital personal shopping tool Style Board, grew 18 per cent compared to the same period last year.
The retailer announced it expects full year earnings to be at $3.35 to $3.55 per share, with revenue in the range of $15.2 billion to $15.4 billion.
While other department store retailers have closed some stores, Nordstrom has continued its expansion plans. The company has opened eight stores to start the year, including the chain’s Men’s Store in Manhattan, its first full-line store in New York, last month and seven Nordstrom Rack locations in the US and Canada.
Nordstrom will also open its flagship store in New York late next year. The Men’s store offers customers the option to pick up goods they bought online 24 hours a day.