By Micah Maidenberg
Nordstrom Inc. said its decision to close stores as the coronavirus was spreading in March hit sales hard during its latest quarter.
Overall, sales dropped 40% from the year earlier to $2.03 billion for its quarter that ended May 2.
Sales were down 36% in its full-price locations and 45% among off-price shops. The company closed its fleet beginning March 17 as officials were imposing social-distancing measures meant to contain Covid-19, including those that called for shutting down so-called nonessential retailers.
Analysts expected Nordstrom to generate $2.38 billion in sales for the latest quarter, according to FactSet.
The Seattle-based retailer reported a loss of $521 million, or $3.33 a share, down from earnings of $37 million, or 23 cents a share, the year earlier.
After-tax charges, including asset impairments from store closures and premium pay and benefits, related to the coronavirus of $173 million weighed on results, the company said.
The company said Thursday it started to reopen stores earlier this month and now has about 40% of its portfolio open.
Nordstrom also has moved to shut down some stores on a permanent basis. Earlier this month, it said it would close 16 full-line stores. Last week, it said it would permanently close its three Jeffrey specialty boutiques.
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