What: Q4 net earnings fell from USD 193 million last year to USD 33 million

Why is it important: digital sales reaching 54% of the business and positive operating cash flow for third consecutive quarter

Q4 outlook (compared with the same period in 2019):

-Total company net sales decreased 20% from USD 4.44 billion to USD 3.55 billion.

-Digital sales increased 24% and represented 54% of the business (approx. USD 2 billion).

-For the Nordstrom brand, net sales decreased 19%.

-For the Nordstrom Rack brand, net sales decreased 23%.

-Earnings before interest and taxes (“EBIT”) was USD 30 million compared with USD 299 million last year.

-Top performing merchandise categories included home, active and beauty.

2020 outlook:

-Nordstrom had a net loss of USD 690 million, versus reporting a profit of USD 496 million in 2019. The first quarter of 2020, with the onset of the pandemic, took the biggest toll on profitability.

-“The toughest category just broadly is apparel, particularly men’s apparel,” said Nordstrom. “We have a sizable work and formal assortment. That’s also true in women’s. Fashion apparel is the most perishable. We are being super conservative on what we are investing in there.”

2021 outlook:

-Revenue, including retail sales and credit card revenues, is expected to grow more than 25%, with digital representing approximately 50% of sales.

• Pete Nordstrom said, “We’re super enthusiastic with Asos,” which purchased brands from the bankrupt Arcadia in the U.K. Nordstrom has been selling Topshop merchandise exclusively for several years. “Asos is capable of investing and elevating the brand.”

Nordstrom forecast that the company’s annual revenue will reach USD 17 billion in the next three to five years, which compares to USD 10.38 billion in sales last year, and USD 15.13 billion in 2019.

Nordstrom Q4 press release

Nordstrom sees sales and earnings decline