US fashion retailer Nordstrom’s sales increase 23% in Q4FY21

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Net sales for Nordstrom, a leading U.S.-based fashion retailer, in the fourth quarter that ended January 29, 2022, increased 23% compared to the same period in fiscal 2020. While sales Company net income decreased by 1% compared to the same period of fiscal 2019, in line with the third quarter of fiscal 2021.

Digital sales in the fourth quarter decreased 1% compared to the same period of fiscal 2020 and increased 23% compared to the same period of fiscal 2019. Digital sales represented 44% of total sales during the quarter and 42% of sales. for exercise.

Gross profit, as a percentage of net sales, of 38% increased 500 basis points from the same period of fiscal 2020 and increased 340 basis points from the same period of 2019, due improved merchandise margins through reduced markdowns, and increased leverage on purchasing and occupancy costs, the company said in a press release.

“We advanced our strategic initiatives this quarter, with sequential improvement in sales, strong digital growth and a significant increase in profitability,” said Erik Nordstrom, CEO of Nordstrom, Inc.. “Our team continues to work urgently to accelerate our progress and invest in our capabilities to better serve customers and grow sales profitably. Our primary focus is in three areas: improving the performance of Nordstrom Rack , increasing profitability and optimizing our supply chain and inventory flows. Our progress has given us a line of sight to achieve in the coming year the financial goals we have set. presented at our 2021 investor event.”

The company made significant progress in its merchandising strategies throughout 2021, with the number of choices at an all-time high, increasing 50% over last year, and more than 300 new brands launched during the year. Additionally, partnering models with alternative vendors accounted for 10% of the Nordstrom banner’s GMV in the fourth quarter, compared to 7% in 2019.

“We experienced a significant increase in merchandise margin this quarter as we engaged customers through our compelling and expanded holiday gift offering, while also reducing promotional activities,” said Pete Nordstrom, President and Chief Brand Officer of Nordstrom, Inc.. “Going forward, we are focused on more effectively balancing inventory with demand while increasing the efficiency of our network and delivering novelty and selection to our customers.”

The company continued to address global supply chain disruptions throughout the quarter by accelerating receipts and investing in improving inventory levels. Inventory levels at the end of the quarter were higher than expected, but the company expects to reduce inventory to sales in the first quarter of fiscal 2022.

Fibre2Fashion (RR) Press Office

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