Nordstrom Inc. gave an update on the impact of COVID-19 in a securities filing on Wednesday.
The department store retailer said the global crisis resulting from the spread of the virus has had a “substantial” impact on its business, and that it expect results for its quarter ending May 2, 2020 and beyond to be adversely impacted in a “significant” manner.
“The longer our stores remain closed to the public, the greater impact it will have on our results of operations and financial condition, and if our physical locations remain closed to customers for an extended period of time our financial situation could become distressed,” Nordstrom stated.
Nordstrom noted in the filing that it is continuing to generate sales and clear excess inventory by fulfilling customer online orders from both its physical stores and its fulfillment centers as it is “uncertain when we will be able to reopen our physical stores to customers.”
Similar to many other retailers, Nordstrom has already taken a number of steps to reduce costs and boost liquidity. A majority of the company’s workforce has been furloughed or assigned zero hours of work, with Nordstrom providing benefits through the end of May to all store employees impacted by the closures.
Also, Nordstrom’s executive team will forgo part of their salary, and both Pete and Erik Nordstrom will decline their salary from April through September. Similarly, all members of the company’s board will forgo cash compensation for a six-month period.