A Nordstrom retailer in Irvine, California.
Scott Mlyn | CNBC
Nordstrom on Tuesday reported fourth-quarter gross sales and earnings that topped analysts’ estimates, due to stronger shopper demand on-line and development at its off-price Nordstrom Rack enterprise.
However the firm cautioned that it has been not too long ago impacted by transport delays, which held up a few of its vacation merchandise from attending to cabinets and stockrooms on time. Nordstrom stated it’s working to promote by that stock, most of which is nonseasonal, throughout its fiscal first quarter. It stated it ought to be again to regular stock ranges by the second quarter.
“Heading into 2021, we’re taking steps to enhance our stock place,” CEO Erik Nordstrom stated in an announcement.
The retailer’s shares have been falling round 3% in after-hours buying and selling.
This is how Nordstrom did for the quarter ended Jan. 30 in contrast with what analysts have been anticipating, utilizing Refinitiv information:
- Earnings per share: 21 cents vs. 14 cents anticipated
- Income: $3.65 billion vs. $3.60 billion anticipated
Nordstrom’s web earnings shrank to $33 million, or 21 cents per share, from $193 million, or $1.23 a share, a yr earlier. That got here in higher than the 14 cents per share that analysts have been anticipating, in keeping with a Refinitiv survey.
Complete income fell almost 20% to $3.65 billion from $4.54 billion a yr earlier. That got here in forward of a forecast for $3.60 billion.
Nordstrom stated its digital gross sales swelled 24% from a yr earlier and represented 54% of its complete enterprise in the course of the fourth quarter.
Whereas the division retailer operator says the timing of buyer demand recovering from pandemic lows stays unsure, it’s nonetheless calling for fiscal 2021 gross sales to develop greater than 25%. Analysts had been calling for year-over-year income development of 26%.
E-commerce, meantime, is anticipated to characterize about 50% of gross sales this yr. Nordstrom not too long ago outlined this forecast at a virtual investor day, the place it stated it additionally plans to take a position extra in rising the Nordstrom Rack enterprise on-line. This outlook assumes that Nordstrom’s shops stay open in the course of the yr, the corporate stated.
Nordstrom is not the one retailer that faces transport headwinds. Backlogged ports within the U.S. and heightened transport prices proceed to hit companies that promote every thing from attire and footwear, to home equipment, to at-home health tools.
As buyers do return to shops, the persisting drawback may make it much more tough for retailers to plan their inventories and hold cabinets chock-full of products.