What: Nordstrom sees earnings decline but remains focused on future growth.

Why it is important: Like other retailers, the company has been hurt by the lack of store traffic.

Third-quarter net earnings at Nordstrom dropped to US$53 million from US$126 million in the year-ago period, though the company cited sequential improvement in sales and earnings from this year’s second quarter. Earnings before interest and taxes came to US$106 million, a decrease from US$193 million during the same period in fiscal 2019, primarily due to lower sales volume, partially offset by realized expense savings. Total company sales decreased 16% to US$3 billion last quarter, from US$3.56 billion in the year-ago period. Sharing the results, CEO Erik Nordstrom emphasized that the company remains focused on its three priorities for growth:

• Building a market strategy that links store and digital assets to provide greater services, faster deliveries, more pickup options, and greater merchandise choices in key metropolitan areas.
• Fuelling growth of Nordstrom Rack, which represents one third of Nordstrom Inc.’s total business.
• To increase the velocity of digital sales (digital sales of US$1.6 billion represented 54% of total sales and increased 37% last quarter).

Nordstrom Sees Net Decline; Cites Improving Trends