Nordstrom’s annual net earnings plunged amid lower sales, which an analyst blames on a notable deterioration of customer experience at its department stores.
Net earnings fell 45.3 per cent to $134 million while net sales declined 5.8 per cent to $14.22 billion.
Nordstrom’s net sales fell 8.2 per cent to $9.22 billion while Nordstrom Rack’s net sales dipped 0.6 per cent to $4.78 billion.
During the year, Nordstrom opened or relocated 20 stores.
“Customer service standards are much weaker, merchandising isn’t up to scratch, and the general assortment has become lackluster,” GlobalData MD Neil Saunders.
“During the holidays, in many stores Nordstrom seemed to make very little effort and, as such, wasn’t so much of a destination, even among those with money to spend.”
For this year, the company forecasts a revenue range of 2 per cent decline to 1 per cent growth.
“We’re lazer-focused on efforts we know will drive growth and profitability across the business over the next few years, including new Rack store openings, Nordstrom digital growth and increasing comp store sales,” Nordstrom CEO Erik Nordstrom.
