Digital sales led a strong quarter at Nordstrom, rising 23% in Q2 2018, up from a 20% increase in Q2 2017. Digital sales now account for 34% of all sales at the retailer, up from 29% a year ago. Other highlights of the financial results include:
- Comparable sales increased 4.1% at full-price locations, such as Nordstrom and Trunk Club;
- Comparable sales at off-price locations, including Nordstrom Rack, were up 4%;
- Net revenue was $4.1 billion, up 7.1%; and
- Fiscal 2018 adjusted earnings per share (EPS) reached $3.50 to $3.65.
The retailer’s loyalty program was part of the growth: Nordstrom Rewards shoppers represented 58% of all sales during the quarter, up from 56% in 2017. The company’s anniversary sale was also a success, with the first day’s digital demand surpassing the previous record by 80%.
The good quarter was a reversal of Q1 2018, when disappointing results resulted in a 10% stock price dip. The retailer also was coming off a failed bid to be taken private by members of its founding family.
Nordstrom continues to reinvent itself through new initiatives, including plans to open nine Casper mattress stores-within-a-store. The retailer’s digital initiatives include the acquisition of two tech startups: BevyUp, a platform that helps sales associates communicate with each other, and MessageYes, a solution that enables retailers and brands to text their customers and ultimately, let them make purchases from their phones.