The retailer, which made the announcement during its earnings call with analysts on Tuesday, said it would close all six of the personal styling service’s brick-and-mortar locations. However, instead of shutting down the service, Nordstrom plans to absorb Trunk Club into its department stores.
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“Styling is a key differentiator for Nordstrom,” CEO Erik Nordstrom said in the company’s conference call with analysts. “Our plans include relocating clubhouse styling to nearby Nordstrom stores to reach more customers while continuing to offer our core Trunk-based services.”
Nordstrom acquired Trunk Club — then a men’s shopping service — in 2014. It had since expanded into six physical spaces in Boston, Chicago, Dallas, Los Angeles, Washington, D.C., and New York City. The program, which offers in-person and online shopping options, charges members a $25 styling fee, which is nonrefundable but credited toward customers’ final purchase. (Prior to the opening of its men’s and women’s stores in Manhattan, the Trunk Club — or the Clubhouse — on 51st Street and Madison Avenue was the only physical space for New Yorkers to shop Nordstrom’s wares.)
The announcement came on the same day Nordstrom posted disappointing fourth-quarter results and announced changes to its executive ranks.
For the period ended Feb. 1, the department store logged earnings per share of $1.23 — a significant miss against analysts’ bets of $1.47 — on profits of $193 million. Revenues, which climbed 1.3% to $4.54 billion, also missed expectations of $4.56 billion.
What’s more, the Seattle-based firm retired its co-presidency structure, naming Erik Nordstrom as its sole CEO and Pete Nordstrom as president and chief brand officer. Both brothers will remain on the board of directors.
“As we move forward, we are further leveraging digital capabilities and scaling our market strategy to drive sales and earnings growth,” Erik Nordstrom said. “The momentum from our investments and market strategy is enabling us to get closer to customers, transforming the way we’re serving them.”
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