Nordstrom's $521 Million Loss Isn't as Bad as It Seems
On Thursday afternoon, Nordstrom (NYSE: JWN) became the latest department store giant to report a massive loss for the first quarter of fiscal 2020. Like peers, Nordstrom closed most of its stores in mid-March in response to the COVID-19 pandemic, contributing to a sharp drop in sales and massive margin erosion.
However, the worst of the pandemic's impact may be past for Nordstrom, thanks to the company's aggressive efforts to cut costs and clear out old inventory. While it could take a year or two for Nordstrom to get fully back on track, now could be a great time for patient investors to bet on this long-term outperformer.
The first quarter started off well for Nordstrom, with sales ahead of plan in February (the first month of Nordstrom's fiscal Q1). Unfortunately, the COVID-19 pandemic crushed the company's momentum in March. Store traffic slowed in the first half of the month and the retailer was forced to close all of its stores in mid-March. The reopening process didn't begin until earlier this month, after the end of the fiscal quarter.
Source Fool.com
