Nordstrom's sales plunge 40% as pandemic shot stores

Seattle-based Nordstrom said online sales rose 5% to $1.1 billion in its first quarter ended May 2. The retailer has strived to reduce inventory, cut costs and sharpen its marketing strategy, Report says, citing Reuters. 

Upscale department store chain Nordstrom Inc. reported a nearly 40% slump in quarterly sales, as lockdowns to contain the COVID-19 pandemic shut stores.

Nordstrom said roughly 40% of its stores have reopened, though they are in smaller markets. It plans to reopen its entire fleet of shops by the end of June, including in major markets California and New York.

Total net sales in the first quarter dropped to $2.03 billion from $3.35 billion a year earlier.

“We successfully strengthened our financial flexibility by increasing liquidity, lowering inventory by more than 25 percent from last year and significantly reducing our cash burn by more than 40 percent from March into April,” Chief Executive Erik Nordstrom said in a statement. “We’re entering the second quarter in a position of strength.”