Nordstrom has reported a $521 million loss and a forty percent drop in sales as its stores closed during the pandemic. However the retailer sounded a confident note, saying its financial position will allow it to successfully get through the current crisis.
“We successfully strengthened our financial flexibility by increasing liquidity, lowering inventory by more than 25 percent from last year and significantly reducing our cash burn by more than 40 percent from March into April,” said Erik Nordstrom, CEO of Nordstrom. “We’re entering the second quarter in a position of strength, adding to our confidence that we have sufficient liquidity to successfully execute our strategy in 2020 and over the longer term.”
“As we anticipate an acceleration of these longer-term customer trends, we’re taking proactive steps to move faster in executing our strategic plans,” said Pete Nordstrom, president and chief brand officer, Nordstrom.
“Overall, Nordstrom emerges from the pandemic in a reasonable position,” said Saunders, managing director, GlobalData Retail. “It has far more going for it than its peers, but the recovery will be slow, and it needs to work hard to capitalize on and press home its advantages.”
