Cut-price clothing channel, online force drives Nordstrom’s revenue by Reuters

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© Reuters. FILE PHOTO: The exterior of the Nordstrom flagship store is seen during a media preview in New York

(Reuters) – Nordstrom Inc (NYSE 🙂 posted better-than-expected revenue for the holiday quarter on Tuesday, helped by a surge in e-commerce sales and growth in its off-price business, Rack. The pandemic-induced decline in household income and high unemployment rates have led to an increase in demand for affordable clothing. This drove Nordstrom’s off-price business, which also benefited from a larger shift toward online shopping. Sales at Nordstrom Rack were down 23% from the prior year, but were better than the 32% drop in the prior quarter. Digital sales of around $ 2 billion in the reported quarter accounted for 54% of the retailer’s total business. Total revenue fell 19.7% to $ 3.65 billion in the fourth quarter ending January 30. Wall Street had forecast $ 3.60 million, according to analysts polled by Refinitiv IBES.

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