Nordstrom expects its revenue to rise more than 25% in 2021 with about half of sales coming from its digital business, according to CNBC. The company plans to focus its investments on smaller-format stores, building its off-price Rack business and e-commerce in response to new purchasing trends.
- Nordstrom’s projected sales growth in 2021 is a bit lower than the 26.6% increase expected by analysts,
- The company also expects earnings before interest and taxes to be positive in fiscal 2021.
- Nordstrom’s brick-and-mortar stores were closed for two quarters due to Covid restrictions in the spring, hurting sales.
- The company is not expected to report its fourth-quarter results until March 2 and projects sales to be down in the low 20% range compared with a year earlier.
- The company anticipates positive earnings before interest and taxes.
- Nordstrom expects revenue to increase at a low single-digit pace annually from 2019 levels, while profits will continue to grow at a rate faster than sales in the longer-term.
- With an affluent customer base, Nordstrom is seen as one of the strongest department store chains in the U.S.
- The company’s online investments have paid off and boosted performance and it is close to having half of its business from digital, far ahead of rivals.
- Nordstrom expects Rack to make up half of its sales in the near future, up from a third at the end of the most recently reported fiscal year.
Nordstrom stock is currently declining. JWN: NYSE is down 1.64%
