Nordstrom’s quarterly sales top pre-pandemic levels

39% of Nordstrom’s total sales were digital during the retailer’s first fiscal quarter, which ended April 30, 2022. Digital sales were flat compared to the same period of fiscal 2021, with customers choosing more in addition to shopping in stores.

Nordstrom reported net income of $20 million in the first quarter. The company’s net sales increased 18.7% from the same period in fiscal 2021, surpassing pre-pandemic sales levels, the company said. And gross merchandise value (GMV) increased by 19.6%. During the quarter, net sales for the Nordstrom banner (which excludes Nordstrom Rack) increased 23.5% and GMV increased 24.8%.

Men’s and women’s apparel, footwear and designer apparel saw the strongest growth from 2021, the company said in its press release. The company attributes this growth to customers refreshing their wardrobes for occasions such as social events, travel and returning to the office.

The average ticket at Nordstrom is $242, according to the Top 1000 database. The Digital Commerce 360 ​​database sorts online retailers by order of web sales. Nordstrom ranks No. 20.

Omnichannel efficiency

CEO Erik Nordstrom said he saw the power of additional pickup options, according to a SeekingAlpha transcript of the quarterly earnings call.

“Customers clearly appreciate our interconnected model, with order pickup accounting for 10% of Nordstrom.com’s demand this quarter,” he said. This is a 2% increase over the previous year.

He attributed the success to Buy Online, Pick Up In Store (BOPIS) and the company’s style program.

“Buy online, collect in store also remains our most profitable customer journey and one of our most satisfying customer experiences,” he said. “Our style program also continues to be a powerful driver of engagement as we deliver convenience and build deeper customer relationships through our Closer to You strategy.”

The company offers styling services that include low-touch outfit inspiration through digital channels and one-to-one, one-on-one relationships with stylists, Erik Nordstrom said.

“Customers spend seven times more and report higher levels of satisfaction when engaging with a stylist, whether in-store or online,” he said. “While we’re still seeing the most customers engaged with our in-person style, we’re seeing rapid growth within our digital services.”

Anne Bramman, the retailer’s chief financial officer, said she expects stores to continue to be a bigger driver of growth in 2022.

“But digital, in general, is a very important part of our business,” Bramman said. “And frankly, we’re pretty agnostic [about] how a customer shops as long as it’s a great experience for them.

Partnerships

President and Chief Brand Officer Pete Nordstrom said shoe sales saw double-digit growth with increased demand in formal, casual and athletic styles. He added that alternative partnership models accounted for 12% of the company’s GMV in the first quarter.

“We are also excited about the launch of our new brands,” said Pete Nordstrom. “In the second quarter, we are launching Allbirds, a forward-thinking, forward-thinking sustainable footwear brand. Nordstrom will be one of Allbirds’ few key business partners.

He said Nordstrom will offer Allbirds styles for men and women in select stores starting June 1. Additionally, he said the company also plans to add these styles to Nordstrom.com later this summer.

The company also opened the first physical outlet co-branded with ASOS, Pete Nordstrom said. The new store at The Grove in Los Angeles is specifically designed to appeal to young adults, he said.

Nordstrom Rack

Nordstrom Rack sales were up 10% from a year ago, Erik Nordstrom said. Increased in-store traffic, improved conversion and better inventory levels drove that growth, he said. He added that the company has increased its offering of premium brands and adjusted its assortment to better meet customer needs. He said it helps balance the prices.

For the fiscal first quarter ended April 30, 2022, Nordstrom announced:

-Net sales increased nearly 18.7% to $3.47 billion. Net sales were approximately $2.9 in the comparable quarter last year. GMV increased by 19.6% compared to the same period of fiscal 2021.

-For the Nordstrom banner in particular, net sales increased 23.5%, surpassing pre-pandemic levels. GMV increased by 24.8% compared to the same period of fiscal 2021.

-For the Nordstrom Rack banner, net sales increased 10.3% to approximately $1.18 million. That compares to about $1.07 million in the same period of fiscal 2021.

-Digital sales accounted for 39% of total sales in the quarter.

Percentage changes may not add exactly to dollar figures due to rounding.

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