Nordstrom’s court filing Canada presents a poor image. The company lost money every year it operated in Canada, the company told the court, and the Canadian subsidiary generated only 3 percent of the group’s net sales. Since its inception, the Canadian company has been awarded $775 million in funding. High operating costs and the aftermath of the coronavirus pandemic led to the decision to close the company, it said.
“We entered 2014 with a plan to build and sustain a long-term business in Canada,” said Eric Nordstrom, CEO of the family-run business. Report. “Despite our best efforts, we do not see a realistic path to profitability for Canadian business.”
The company operated six Nordstrom stores and seven discount stores in Canada called Nordstrom Rack. The local e-commerce website in Canada ceased operations on Thursday, with stores expected to close by the end of June, the company said.
The move will hit the company’s 2023 prospects: The company’s net sales are projected to be $400 million lower this year, Nordstrom’s quarterly earnings report noted. The company said it expected a 2 percent drop in revenue.
Analysis: Nordstrom’s salvation lies in the luxury segment
The Seattle-based company operates more than 300 stores across the U.S. and had $119 million in revenue in the most recent quarter. Men’s clothing, footwear and women’s clothing saw strong growth last year over 2021.
“There are no changes to Nordstrom US’ operations or stores and Nordstrom US will continue to operate on a business-as-usual basis,” the company said in a statement.
Fitch Ratings had Nordstrom downgraded earlier in the year, citing operational challenges and several changes in its off-price business. But the billionaire investor saw its stock rise in February Ryan Cohen He bought a stake in Nordstrom.