Nordstrom reports holiday sales down 3.5%

Nordstrom announced a net sales decrease of 3.5% for the nine-week holiday period ended December 31, 2022, compared with the nine weeks ended January 1, 2022. For the Nordstrom banner, net sales decreased 1.7%, while net sales at the Nordstrom Rack banner decreased 7.6%. "The holiday season was highly promotional, and sales were softer than pre-pandemic levels. While we continue to see greater resilience in our higher income cohorts, it is clear that consumers are being more selective with their spending given the broader macro environment," said Erik Nordstrom, chief executive officer of Nordstrom, Inc. "Still, our team executed well, and we enter 2023 in a stronger position as we prioritized starting the new fiscal year with clean inventory levels, even if this required more markdowns than planned." The company took additional markdowns in order to finish the year in a healthy and current inventory position. The company expects year-end inventory levels to be down by a double-digit percentage compared with last year, and roughly at 2019 levels. "Having a healthier inventory level and mix positions us well to react quickly to changing consumer demand," said Pete Nordstrom, president and chief brand officer of Nordstrom, Inc. "Given the continued uncertain environment, we remain focused on executing with flexibility and agility, including conservative buy plans and faster inventory turns. We continue to enhance our customer experience with our Closer to You strategy, which links our digital and physical assets. Additionally, we are further optimizing our supply chain to improve the customer experience and expense efficiency, and we expect these initiatives will continue to deliver significant benefits in 2023."