Nordstrom Inc. reported that net sales increased in its fiscal fourth quarter ended Feb. 3, 2024, while online sales declined. Results were in line with expectations, the retailer said. 

The retailer operates the Nordstrom and Nordstrom Rack brands. 

“In 2023, we continued to make progress against the priorities we identified at the outset of the year to improve the customer experience and drive better financial results,” Nordstrom president Pete Nordstrom said in a statement on March 5. “Across both banners, we improved our merchandise assortment by effectively managing our inventory levels and investing in the products and brands we know our customers respond to. This year, we’ll build on that progress in merchandising and other green shoots across our business as we focus our efforts on our refreshed 2024 priorities.”

Activewear, beauty and women’s apparel demonstrated the highest growth in Q4, Nordstrom said. Activewear and beauty were also the top-growing categories for the full year.

Nordstrom is No. 21 in the Top 1000, Digital Commerce 360’s database of the largest online retailers in North America. Digital Commerce 360 categorizes Nordstrom as an Apparel & Accessories retailer.

How much does Nordstrom make from online sales?

In the fourth quarter, Nordstrom company net sales totaled $4.30 billion. That was a 2.2% year-over-year increase. Over the same period, Nordstrom online sales declined 1.7%. Online sales accounted for 38% of fourth-quarter sales, down from 40% of net sales in Q4 2022.

The retailer reported $134 million in net earnings, an increase from $119 million in the year-ago period.

For the full year, Nordstrom reported $14.22 billion in total sales, down from $15.08 billion in 2022. Online sales made up 36% of total Nordstrom sales for the year.

The apparel retailer has plans to invest in digital sales in 2024.

“We’re very, very focused on driving digital growth,” chief financial officer Cathy Smith said.

With that goal in mind, Nordstrom plans to increase its online product assortment in 2024, with a focus on items priced under $100. “One thing we’re excited about is the launch of our digital marketplace on nordstrom.com starting in April,” CEO Erik Nordstrom told investors in a March 5 call. “Marketplace will allow customers to shop more products and sizes from their favorite brands while providing them more access to new and emerging brands.”

Nordstrom’s digital customers also tend to shop at the retailer’s stores, so it has plans to better use its physical assets to bolster online sales through better omnichannel fulfillment going forward.

Nordstrom sales by brand in Q4

The Nordstrom brand totaled $2.87 billion in Q4 sales, equal to about two-thirds of total sales in the quarter. That was a 3.0% decline year over year. Nordstrom sales declined 8.2% in 2023.

Nordstrom Rack, the retailer’s discount sister brand, far outpaced the banner brand. Rack sales grew 14.6% in the quarter, to $1.43 billion. Digital sales also grew for the brand in Q4, although Nordstrom did not share the specific data point. Nordstrom Rack sales declined 0.6% for the full 2023 fiscal year.

Both websites saw soft traffic in the quarter, Erik Nordstrom said. However, average order value and average selling price increased across both brands. Nordstrom Rack’s conversion rate improved, too, making the brand’s digital business profitable in 2023, Nordstrom said.

Nordstrom.com is “quite profitable,” too, Smith said.  “It’s a great vehicle for us, and it’s how the customer is choosing to shop,” she said of Nordstrom.com.

Nordstrom earnings

For its fiscal fourth quarter ended Feb. 3, 2024, Nordstrom reported:

• Net sales increased 2.2% to $4.30 billion.
• Nordstrom online sales declined 1.7%.
• Online sales made up 38% of total sales.

For the full year ended Feb. 3, 2024, Nordstrom reported:

• Total sales declined to $14.22 billion, from $15.08 billion in the year-ago period.
• Nordstrom online sales accounted for 36% of total sales.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. 

Do you rank in our database?

Submit your data and we’ll see where you fit in our next ranking update.

Sign up

Stay on top of the latest developments in the ecommerce industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, Twitter and Facebook. Be the first to know when Digital Commerce 360 publishes news content.