Nordstrom Inc.’s is seeing a drastic uptake in online order pickups as ecommerce revenue hits a third of revenue. Nordstrom is No. 18 in the Internet Retailer 2019 Top 1000.
Online sales generated 34% of sales during the quarter and 32% so far this year, compared with 31% for the third quarter last year and 29% for the comparable period to date last year. That equates to a 7.1% increase in sales for the quarter to $1.21 billion, up from $1.13 billion, and a 6.2% year-over-year increase for the year so far to $3.42 billion, up from $3.22 billion. Total sales fell 2.2% for the quarter to $3.57 billion from $3.65 billion and 3.7% for the year so far to $10.69 billion, up from $11.10 billion.
Online order pickups are the most profitable part of Nordstrom’s business, CEO Erik Nordstrom said on an earnings call transcript provided by the retailer, but exact profit for the service wasn’t disclosed. Total profit increased 0.8% to $1.225 billion, compared with $1.215 billion the prior year.
More than half of online revenue growth came from the growth of online order pickups. In metropolitan markets like Los Angeles and New York, Nordstrom said more than two-thirds of online sales are picked up in stores. Nordstrom expects 40% of online pickups to occur in the fourth quarter.
In other retailer financial news:
- Electronics retailer Best Buy Co. Inc. (No. 13) boosted domestic online sales 15.0% to $1.40 billion for the third fiscal quarter ended Nov. 2. The share of total sales generated by U.S. ecommerce increased to 15.6%, up from 13.8% last year. For the year so far, domestic ecommerce has grown 15.6%, but the retailer did not report online sales figures. Total revenue increased 1.8% for the quarter to $9.76 billion, up from $9.59 billion last year. For the year so far, revenue is up 1.3% to $28.44 billion, from $28.08 billion compared to last year.
- Victoria’s Secret owner L Brands Inc. (No. 39) grew direct sales for all its brands 5.0% for the third fiscal quarter ended Nov. 2. Direct sales, which is mostly ecommerce sales, hit $523.7 million for the quarter, compared with $498.9 million for the same period last year. However, direct sales for Victoria’s Secret, the company’s largest brand, fell 5.6% to $331.3 million. Meanwhile, the Bath and Body Works unit grew online sales 30.1% to $192.4 million. For the year so far, direct sales are up 9.5% to $1.597 billion from $1.459 billion the prior year.
- Dick’s Sporting Goods (No. 58) reported a rounded 13% increase in online sales year over year for its third fiscal quarter ended Nov. 2. Penetration, reported only to two digits, increased to 13% compared with 12% during the same quarter last year. Dick’s didn’t break out exact figures, but, based on total income, ecommerce generated $254.8 million in revenue compared with $223.2 million the year before. Total sales increased 5.4% to $1.96 billion from $1.86 billion for the quarter, and 3.4% to $6.14 billion from $5.94 billion for the year so far.