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This statistic highlights Nordstrom’s Revenue Breakdown by Segment, split between Nordstrom and Nordstrom Rack, reported on a quarterly basis from 2016 onwards.
|Segment||Q3 2020||Q2 2021||Q3 2021||Contribution in Q3 2021|
(All figures in millions, except percentages)
The total revenue of Nordstrom increased from $3,002 million in Q3 2020 to $3,534 million in Q3 2021, marking an overall growth of approximately 17.7% in revenue based on a year-on-year basis. On the contrary, the revenue declined by $31 million in Q3 2021, as compared to $3,565 million in Q2 2021, leading to a 0.87% fall in revenue on a quarter-on-quarter basis. The revenue of Nordstrom Inc is generated mainly through two of its segments, Nordstrom and Nordstrom Rack, accounting for 66.3% and 33.7% of the total revenue in Q3 2021, respectively.
The company’s business is seasonal and exhibits cyclical trends. The sales are higher in the second and fourth quarters due to Anniversary sale and holiday season respectively. Nordstrom plans all the purchases keeping in mind these trends. Also, this industry is highly competitive with the company facing competition from local, regional, domestic as well as international retailers. This includes competition faced in department stores, specialty stores, internet-based platforms, and the competitors also vary in different markets. The company believes that providing the best services and products is the key to overcoming the competition.
Covid-19 had an adverse impact on the company’s business. In 2020, measures like lockdown were implemented to reduce the spread of the pandemic which led to an economic downturn. These restrictions negatively impacted the operations of the company, especially the physical outlets.
Nordstorm’s revenue can be bifurcated into the following segments:
This segment provides a wide variety of products across different prices, brands, and styles and provides unmatched experience and services. These products can be accessed through a website, mobile application, as well as through numerous stores across Canada and the United States.
Nordstrom had the highest share of 66.3% in the company’s revenue in Q3 2021. The total revenue increased from $2,120 million to $2,343 million, from Q3 2020 to Q3 2021, marking a 10.5% increase in revenue on a year-year basis. On the other hand, the revenue declined by $74 million, from $2,417 million in Q2 2021 to $2,343 million in Q3 2021, marking a 3% fall in revenue on a quarter-on-quarter basis.
This off-price destination provides in-demand products through its leading off-price digital presence. It also operates via clearance stores, Rack stores, a website, and a mobile application as well.
The Nordstrom Rack segment had a 33.7% share in the company’s Q3 2021 revenue. The revenue witnessed an increased by $309 million, from $882 million in Q3 2020 to $1,191 million in Q3 2021, making an increment of 35% on a year-on-year basis. It also grew by $43 million from $1,148 million in Q2 2021 to $1,191 million in Q3 2021, marking a 3.7% increase in revenue on a quarter-on-quarter basis.
Nordstrom was founded in 1901 in Seattle, Washington as a retail shoe business and was built on the foundation of the best service, quality, and value for money for the customers. It offers a wide range of high quality and private label merchandise including shoes, apparel, home goods, and beauty accessories for young adults, men, women, and children as well. The company has arrangements to produce its private-label merchandise and purchases its goods from high-quality domestic and even foreign suppliers. It offers superior service and better experience and products that help make shopping fun, convenient and personalized. The company’s stock is traded on NYSE under the ticker “JWN”.
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