US retailer Nordstrom’s sales rise 12% in Q2FY22

Digital sales increased 6.3 per cent in the second quarter compared with the same period in fiscal 2021. The timing shift of the anniversary sale had a positive impact on company digital sales of approximately 400 basis points compared with the second quarter of 2021. Digital sales represented 38 per cent of total sales during the quarter.

The net sales of Nordstrom increased 12.0 per cent and GMV increased 12.2 per cent in the second quarter compared with the same period in 2021. The timing shift of the anniversary sale, with one day falling into the third quarter of 2022 versus roughly one week in 2021, had a positive impact on net sales of nearly 200 basis points compared with 2021.

Gross profit, as a percentage of net sales, of 35.2 per cent increased 65 basis points compared with the same period in fiscal 2021 primarily due to leverage on buying and occupancy costs, partially offset by higher markdown rates, the company said in a press release.

“We delivered solid results in the second quarter, with top line growth, increased profitability and continued progress in our strategic initiatives,” said Erik Nordstrom, chief executive officer of Nordstrom, Inc. “While our quarterly results were consistent with our previous outlook, customer traffic and demand decelerated significantly beginning in late June, predominantly at Nordstrom Rack. We are adjusting our plans and taking action to navigate this dynamic in the short term, including aligning inventory and expenses to recent trends, and we remain confident in our ability to deliver on our long-term strategic and financial goals.”

In the second quarter, men’s apparel had the strongest growth versus 2021, and shoes, women’s apparel and beauty also had double-digit growth, as customers updated their wardrobes and returned to occasions. Total anniversary event sales increased 5 per cent, including one day of the event that fell in the third quarter.

“We elevated the customer experience and increased engagement during this year’s anniversary sale, and we’re proud of our team’s execution and dedication to customers,” said Pete Nordstrom, president and chief brand officer of Nordstrom, Inc. “As we look to the second half of the year, we are aggressively right-sizing our inventory while investing in supply chain and merchandising capabilities that will benefit us in 2023 and beyond.”

Fibre2Fashion News Desk (RR)