The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Nordstrom Inc. reported a sharp drop in holiday sales, but the worst could be behind it as it says demand has continued to strengthen in the new year.
Net sales tumbled about 22 percent during the nine-week holiday period ended Jan. 2 compared to last year. The company, which operates both the high-end Nordstrom chain and discounter Nordstrom Rack, said its November and December sales were in line with expectations for the fourth quarter.
The department-store sector had a difficult 2020, with store closures and demand for more online fulfillment driving shoppers to websites like Amazon and Walmart Inc. Nordstrom was able to pick up more digital shoppers this holiday, too, accounting for 54 percent of total sales compared with 34 percent from the same period in 2019, but incremental customer spending went disproportionately to online and big-box retailers this season.
Still, December sales were up from November levels, “with momentum continuing into January,” it said in a statement.
By Anne Riley Moffat and Leslie Patton
Fast-growing start-ups like Hettas, Saysh and Moolah Kicks created sneakers designed specifically for active women. The sportswear giants are watching closely.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.