What: Nordstrom reported net earnings of USD 119 million for the fourth quarter and will be discontinuing its Canadian business operations.

Why it is important: Sales and earnings were in line with the retailer’s updated fiscal 2022 outlook and the department store will be entering 2023 with a healthier inventory position. However, the company is looking to drive profitable growth and enhance shareholder value with the closure of its Canadian operations.

The US-based retailer saw a decrease in net earnings and net sales but managed to stay in line with its updated fiscal 2022 outlook.

For fiscal year 2023, Nordstrom is focusing on enhancing the customer experience, improving Nordstrom Rack performance, increasing inventory productivity, and continuing to advance its supply chain optimization.

Right-sizing their inventory has positioned the retailer for greater agility in current economic uncertainty and closing its Canadian business will allow the department store to simplify operations and focus on driving long-term profitable growth in its core US business.

The wind-down of Nordstrom Canada is expected to result in an approximate USD 400 million decline in total company net sales and a USD 35 million improvement in total company EBIT in fiscal 2023, relative to fiscal 2022.

Nordstrom reports fourth quarter 2022 earnings, announces wind-down of Canadian business