Nordstrom posts wider Q2 loss, sales down 53%

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Nordstrom Inc. shares fell more than 6% in the extended session Tuesday after the retailer reported second-quarter sales below Wall Street expectations and swung to a wider loss. Nordstrom said it lost $255 million, or $1.62 a share, in the quarter, which included after-tax, COVID-19-related charges of $14 million. That contrasted with earnings of $141 million, or 90 cents a share, during the same period in fiscal 2019. Sales fell 53% to $1.8 billion, from $3.8 billion a year ago, the company said. Analysts polled by FactSet had expected a GAAP loss of $1.59 a share on sales of $2.4 billion. Total digital sales fell 5%, the company said. Nordstrom’s e-commerce business “continued to experience significant growth” in new customers of more than 50%, the retailer said. Operating cash flow of more than $185 million was above company expectations and allowed Nordstrom to pay down $300 million on its revolving line of credit, the company said. Nordstrom ended the second quarter with $1.3 billion in liquidity, including $1 billion in cash. “We’re confident that we can improve sales trends in the second half of the year and beyond,” President Pete Nordstrom said in a statement. “Our inventories are current and in-line, and we’re focused on amplifying relevant categories, brands and trends to meet customers’ changing preferences.” The shares ended the regular trading day down 0.2%.
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