Nordstrom Faces Financial Challenges, Banks on Nordstrom Rack for Growth

As profits plummet by 45%, Nordstrom aims to recover by expanding its discount Rack stores and enhancing digital sales.

Nordstrom shares fell sharply after issuing a disappointing fiscal 2024 outlook, with revenue expected to range from a 2% decline to a 1% gain.
The retailer plans to open 22 new Nordstrom Rack stores in 2024, focusing on growth through its discount arm as profits fall 45%.
Nordstrom Rack's net sales grew 14.6% in the last quarter, outpacing the namesake brand and indicating a shift towards value shopping.
The company's overall net earnings decreased to $134 million, down 45% from the previous year, amid challenges in the retail sector.
Nordstrom's digital sales represented 36% of total sales, a slight decrease from the previous year, as the company aims to drive growth through online and in-store sales.