What: Nordstrom has announced results for the final quarter of 2020-2021 and for the whole year to end January 2021. Unsurprisingly, Q4 was tough with total sales down 20% on the previous year. Digital sales were up 24% and represented 54% of the total. The key categories were home, active and beauty.

Why it is important: For the year, total revenues fell from $15 524 m to $10 715 m, with Nordstrom Rack, the off-price format representing around one-third of the total. Net earnings fell from $496 m to a loss of $ -690 m. Gross profit or margin fell from 34.4% to 26.6% and SGA expenses rose to 40.2% from 31.8%.

For the current year, Nordstrom is expecting a total revenue growth of 25% with online representing around 50%. It is also forecasting an EBIT margin of 3% of sales, with a break even in the first half.

Nordstrom Reports Fourth Quarter 2020 Earnings

Nordstrom Investor Relations