What: The retailer reported a first quarter net loss of USD 205 million and loss per diluted share of USD 1.27.

Why it is important: Nordstrom was impacted by declining revenues and charges associated with its withdrawal from Canada, however, the retailer still beat market estimates for first quarter sales.

Nordstrom has recorded a net loss of $205m in Q1, due to declining revenues and charges linked to its withdrawal from Canada.

Its first quarter 2023 results contained a pre-tax charge of $309m correlated with drawing down Canadian operations, which is still in progress. The shutdown of Canadian operations, which includes 6 department stores, seven Rack stores and e-commerce, is expected to be finalized in June.

Revenues for Nordstrom fell 11.6% from Q1 2022, including 175 basis points negative impact related to the Canadian withdrawal.

Digital sales decreased 17.4% year-over-year, adjusting for the effect of lower supply resulting from the pandemic.

Most categories in the US were down versus 2022. Activewear was the strongest category while beauty and men’s apparel performed above average.

Designer sales were the toughest category for the retailer as post-pandemic trends slowed, with men’s dresswear being the biggest contributor to sales.

The company anticipates revenues will drop by 4 to 6% this year.

Nordstrom reports first quarter 2023 earnings

Nordstrom reports first quarter 2023 earnings WWD Article