Nordstrom reported that its fourth-quarter net earnings dropped to $193mn compared with $248mn during the same period in fiscal 2018. Fiscal 2019 included $29mn of charges, after tax, primarily representing non-cash asset write-downs resulting from the integration of Trunk Club in addition to debt refinancing costs. Earnings before interest and taxes were $299mn, or 6.7% of net sales, compared with $333mn, or 7.6% of net sales for the same period in fiscal 2018. Excluding integration charges of $32mn, EBIT margin slightly decreased compared to prior year. However, net sales grew 1.3% and improved by more than 400 basis points from year-to-date trends, with full-price sales increasing 1% and off-price sales rising 1.8%. Digital sales grew 9% and represented 35% of sales. Online order pickup contributed more than half of digital sales growth in full-price.

Full-year net earnings were $496mn compared with $564mn for fiscal 2018. Fiscal 2019 included integration charges and debt refinancing costs of $29 million, after tax. EBIT was $784 million, or 5.2 percent of net sales, compared with $837mn, or 5.4% of net sales, for fiscal 2018. Excluding integration charges of $32mn in 2019 and credit-related charges of $72mn in 2018, EBIT margin deleveraged by approximately 50 basis points.

For fiscal 2019, net sales decreased 2.2% to $15.13bn from $15.48bn, in line with expectations. Full-price net sales decreased 3.5%. Nordstrom operates 116 full-line department stores. Off-price net sales increased 0.2%. Nordstrom operates 248 Rack off-price stores. Digital sales grew 7% and represented 33% of sales. For fiscal 2020, which does not include any potential impact from the coronavirus, Nordstrom expects a 1.5 to 2.5% sales increase and EBIT of $815mn to $855mn.