Nordstrom's sales fell 40% as coronavirus shut stores
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Nordstrom saw its sales plummet 40 percent in the first quarter after the coronaviirus pandemic caused the upscale department store to temporarily shut locations.
The Seattle-based company said it expects to reopen its stores fully by the end of June, including stores in California and then followed by New York.
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During the shutdown, the company improved its financial flexibility by reducing inventory by more than 25 percent and has reduced the rate at which it is burning through cash.
“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, " said CEO Erik Nordstrom.
Nordstrom furloughed workers and tapped into credit lines to boost its cash reserves.
NORDSTROM CLOSING 16 STORES ON CORONAVIRUS FALLOUT
Nordstrom reported a fiscal first-quarter loss of $521 million, after reporting a $37 million profit in the same period a year earlier.
On a per-share basis, it had a loss of $3.33 in the latest period. Losses, adjusted for non-recurring costs, were $2.23 per share.
Wall Street was looking for an adjusted loss of $1.21 per share.
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The department store operator posted revenue of $2.03 billion in the period, also missing Street forecasts. A year ago, sales were $3.35 billion.
The Associated Press contributed to this article.
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