Seattle store chain Nordstrom reports lofty Q2 losses, reeling from forced closures

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Seattle store chain Nordstrom reports lofty Q2 losses, reeling from forced closures

Nordstrom Inc., the Washington, Seattle-headquartered departmental store chain had reported a brisker-than-anticipated loss over the second quarter of the year as the pandemic induced forced closure measures led to a shutdown of all of its stores across the United States for about half of the reported quarter, while a large number of consumers stayed home with little need for luxury clothing, footwear, cosmetics and fragrances.

Followed by the reveal of its quarterly earnings’ report, the 119-year-old American Dept. store chain’s shares’ prices pummelled as much as 5 per cent on Tuesday’s post-market trading, while the NYSE-listed shares of Nordstrom Inc.

had wrapped up the Wednesday’s market down by 5.47 per cent to $14.69 per share.

Nordstrom suffers large-scale loss amid month-long closure of its stores across the US

According to Nordstrom Inc.’s quarterly earnings’ report released late on Tuesday, the Century-old American departmental store chain had reported a net loss of $255 million or $1.62 per share compared to a profit of $141 million registered at the same time a year earlier, while the long-cherished department store chain, which has evolved into a full-line retailer having been originated as a shoe store in 1901, had clocked a 52 per cent plunge at its total revenue to $1.86 billion, horrendously beating a Wall St.

estimate of $2.38 billion. Meanwhile, as Nordstrom Inc. alongside many of its peers had been lavishly languished over the April to June quarter due to a stiffer shutdown measure adopted to contain the pandemic outbreak which in effect had led to a perilous pause in foot traffic amid stay-at-home orders, unlike a number of big-league US retailers such as JC Penney which had to file for bankruptcy protection because of the pandemic-propelled downturn, addressing to a turnaround in business activities over the second half of the year, the Nordstrom Inc.

President and Chief Brand Officer Pete Nordstrom said in a post-earnings’ conference call with the reporters, “We’re confident that we can improve sales trends in the second half of the year and beyond. Our inventories are current and in-line, and we’re focused on amplifying relevant categories, brands and trends to meet customers’ changing preferences”.