Nordstrom sales in the second quarter down 0,2%
Nordstrom’s total sales in the second quarter were $3.6 billion, down 0.2 percent from 2015, with comparable sales declining 1.2 percent.
In Nordstrom’s mainline stores and its online flagship Nordstrom.com, shoes and beauty performed the best. Denim and emerging brands catering to younger female clientele also outperformed.
The retailer’s net earnings were $117 million. Earnings before tax (EBIT) were $221 million, accounting for 6.5 percent of sales, compared to EBIT $377 million in 2015, which was 10.5 percent of sales.
Retail EBIT was down $59 million due to investments in technology, fulfillment and store opening preparations.
Nordstrom’s Anniversary Sale started a week later than usual in July, pushing the promotion into August. What tends to be the retailer’s biggest event of the year performed better than recent trends.
In the second quarter, Nordstrom expanded its rewards program, enabling consumers to earn points and benefits regardless of payment method. The total number of enrolled customers is now at about 6 million, up from 4.7 million in the previous quarter.
Nordstrom’s focus lately has been on efficiency, using resources to boost the customer experience. In April, Nordstrom announced a planned a reduction of 350-400 jobs in its corporate center and regional support offices to better position itself for growth.
The layoffs will be happening in phases, with the completion in the second quarter of this year. Nordstrom says the cuts will give it more flexibility to respond and react to the changing retail environment and deliver on service, estimating that the reduction in jobs will result in $60 million saved throughout the 2016 fiscal year