August 24, 2022

Nordstrom Suffers Losses As Consumers Leave Behind Even Clearance

Nordstrom stocks fell 15% today as inflation sets in deeper for many US consumers. As per a Nordstrom statement, they are even struggling to sell clearance at this point and had to make deeper markdowns than anticipated to move clearance inventory out. They expect to be hit with a $200 million profit loss the second half of the year.

“The softening trend was more significant in customer segments with the lowest income profile,” Nordstrom CEO Erik Nordstrom stated on the company’s earnings call. “While we saw greater resilience in the higher-income segments — for example, at the Nordstrom banner, items with lower AURs [average unit retail prices] underperformed — higher AURs within our designer business and higher-price luxury projects significantly outperformed lower-priced product.”

This doesn’t surprise me in the least as I’ve noticed that sale items have remained in stock across the board at many stores lately. At one point in time when something when on sale it almost immediately got snatched up. That’s simply not the case now. Most sale items are on sale and in stock for many months after they were clearanced out.

I suspect the Holiday Makeup Collections this year will be fairly minimal due to this but we’ll have to see. Last year, Holiday Collections came out and were on sale within a short time frame and I think we’ll see more of that this year but I also, think the collections will be scaled back.

What do you think?

6 Comments

About the Muse

Isabella MuseIsabella is just an average everyday geeky girl who doesn’t blend her eyeshadow correctly, wears too much blush, and hopes she never finds her holy grail products because she likes the thrill of the chase so much. Her mission is to bring you super honest reviews on makeup, skincare, fragrance and all things beauty. She’s in no way an expert on the topic and she sure as hell isn’t a super model. But she’s passionate about makeup and is seeking like-minded individuals that like pina coladas, getting caught in the rain, and ones that enjoy spending hundreds of dollars at Sephora without feeling buyer’s remorse. If you’re that person feel free to reach out and leave a comment or follow me on Facebook, Instagram, Twitter, and Bloglovin‘.

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Comments

  • Minaxi

    Nothing surprises me anymore and this was to be expected, I think. My guess is that the anniversary sale was a major bust. And all those items will soon be on clearance. I bought nothing. All influencers showed the SAME stuff, whether shoes, clothes, makeup items.. it was all the same. I truly feel like the worst is yet to come.
    This Christmas season is going to be depressing.

  • kimkats

    I wonder if it’s too late for companies to scale back on this year’s holiday makeup collections…. And I wonder if they won’t take the same bath they did last year. I remember just like you – things came out and in literally a few weeks were on sale.

    I need *nothing* at all, but if something is at an attractive enough price (i.e., cheap) I may indulge. I think companies are going to need to realize that a lot of people have hit the saturation point with MU, and that they need to scale back the incessant releases of teh last several years if they want to stay in the game. Otherwise, it’s going to be a short trip to sale-ville for them on pretty much everything they release.

    • Isabella Muse

      They went on sale so SUPER fly fast last year it was ridiculous! I don’t either and I will prob be very reserved with spending.

  • Jackie

    Sounds like the people with less money are the ones having to cut back on their spending:(

    • Isabella Muse

      I think everyone has! Rich, poor, middle class, everyone is just making sure they save versus splurge!

  • kjh

    I hope you’re still reading comments on this…because I have a suggestion for your next opinion question. Sephora (aren’t we done beating that horse yet?) just settled a data breach lawsuit. They sold people’s info without permission, etc. We thought they were exploiting us up front commercially, and now we know they’re exploiting us in the data sector, too. Hang ‘em high.