Clothing retailers have a pretty low bar to clear these days. Solvent? Great. Paying rent? Even better. Nordstrom cleared both of those last quarter and seems well-positioned to emerge from the pandemic in decent shape. In the quarter ended May 2, net sales dropped 40%, which was worse than the already-dire 33% decline analysts predicted, according to the Wall Street Journal.
- Dig Deeper: Online-sales growth of 5% in the quarter wasn’t nearly enough to offset bricks-and-mortar sales responsible for two-thirds of revenue prior to lockdowns.
- Worth Noting: That is a better number compared to the 45% fall that Macy’s expects in its most optimistic scenario over the same period. And of course it is already better off than J.C. Penney and Neiman Marcus, both of which filed for bankruptcy protection this month. While Nordstrom’s credit rating went down a notch in April, it remains an investment-grade issuer. Fitch Ratings said its liquidity is sufficient to last the retailer through the downturn. [WSJ]