Nordstrom Suffers Net Loss of $521 Million USD in Q1 2020

Now hoping to cut its rent payments in half.

Fashion 
11,249 Hypes 4 Comments

Nordstrom has suffered a net loss of $521 million USD in the first financial quarter of 2020, largely due to the ongoing coronavirus pandemic. More specifically, it revealed back in May that its net sales dropped by a whopping 40 percent year over year, with its full-line sales falling 36 percent and off-price sales reducing by 45 percent.

As a result of these financial results, the luxury department chain store is now employing various strategies to restructure its business, including combining its full price, off-price, and Local stores, as well as a series of layoffs. On top of this, Nordstrom also plans on cutting its rent payments down by half for the remainder of the year. “As part of our continued efforts to navigate this situation and achieve the expense reductions announced previously, we are modifying our rent payments until January 2021, at which point we’ll fully reconcile our payments,” said a spokesperson from Nordstrom in an email. “We’re working closely with our store landlords to find a mutually agreeable path forward.”

“COVID-19 has had a very real impact on Nordstrom, accelerating the importance of our market strategy and capabilities we’ve invested in for years,” he continued. “Our new operating model helps us serve customers across our business as one company, while enabling us to be more agile and flexible. We’ll continue to invest in critical capabilities across technology, data analytics and supply chain to deliver for our customers.”

In other business-related news, Brooks Brothers have now secured an interest-free loan of $80 million USD.

Read Full Article

What to Read Next

adidas Beats Expectations With 8% Sales Increase in Q1 2024
Fashion

adidas Beats Expectations With 8% Sales Increase in Q1 2024

Sales of the label’s remaining Yeezy inventory accounted for roughly €150 million EUR in revenues.

PUMA Beats Q1 Market Expectations, Despite Reporting Decrease in Sales
Fashion

PUMA Beats Q1 Market Expectations, Despite Reporting Decrease in Sales

The German sportswear brand reported revenues of €2.1 billion EUR, marking a 3.9% decrease from last year.

Hermès Reports 17% Sales Increase in Q1 2024, Defying Luxury Slowdown
Fashion

Hermès Reports 17% Sales Increase in Q1 2024, Defying Luxury Slowdown

The Birkin brand saw a 14% increase in sales in the Asia excluding Japan, while all other regions earned double-digit growth.


Miu Miu Rules, Balenciaga Rises, and Diesel Falls In Q1 2024
Fashion

Miu Miu Rules, Balenciaga Rises, and Diesel Falls In Q1 2024

Miuccia Prada’s beloved brands continue to battle for the top spot, while Saint Laurent debuts in the top five and Jacquemus falls down the scale.

Here Are the Results for UFC's First "Fight Island" Event
Sports

Here Are the Results for UFC's First "Fight Island" Event

UFC 251 saw three title events.

Ubisoft's Chief Creative Officer Serge Hascoët Resigns Following Sexual Misconduct Allegations
Gaming

Ubisoft's Chief Creative Officer Serge Hascoët Resigns Following Sexual Misconduct Allegations

Along with more executives.

Audemars Piguet Brings Smoked Lacquered Dials to Its Code 11.59
Watches

Audemars Piguet Brings Smoked Lacquered Dials to Its Code 11.59

Adding 10 new options to the collection.

Brooks Brothers Secures $80 Million USD Interest-Free Loan (UPDATE)
Fashion 

Brooks Brothers Secures $80 Million USD Interest-Free Loan (UPDATE)

Ahead of a court-supervised auction.

Best New Tracks: Kid Cudi, James Blake, SahBabii, Juice WRLD & More
Music 

Best New Tracks: Kid Cudi, James Blake, SahBabii, Juice WRLD & More

High-profile collaborations, a powerful posthumous album and more in this week’s rundown.


UFC Details the Creation of "Fight Island" in New Documentary
Sports

UFC Details the Creation of "Fight Island" in New Documentary

Previewing the 10-mile coronavirus “safe zone” on Yas Island.

Dominic Fike Shares New Music Video "Politics & Violence"
Music

Dominic Fike Shares New Music Video "Politics & Violence"

His debut album ‘What Could Possibly Go Wrong’ drops July 31.

Photographer Will Nichols Draws Parallels Between "Palm Trees & Basketball" in New Collection
Art

Photographer Will Nichols Draws Parallels Between "Palm Trees & Basketball" in New Collection

Sunset gradients and glass backboards.

Beyoncé Supports Small Black-Owned Businesses in New NAACP Partnership
Music

Beyoncé Supports Small Black-Owned Businesses in New NAACP Partnership

Business owners in Houston, Minneapolis, Atlanta, New York, Los Angeles can apply for $10,000 USD grants.

Official Look at the Off-White™ x Air Jordan 4 "Sail"
Footwear

Official Look at the Off-White™ x Air Jordan 4 "Sail"

The women’s release is slated for July 25.

More ▾
 
We got you covered. Don’t miss out on the latest news by signing up for our newsletters.

By subscribing, you agree to our Terms of Use and Privacy Policy.