Nordstrom now has one CEO
Nordstrom named Erik Nordstrom as its sole chief executive officer Tuesday
FOX Business' Jackie DeAngelis reports from the new Nordstrom flagship store in New York City and retail expert Erin Sykes discusses whether it's a good move for Nordstrom.
Nordstrom announced Tuesday changes to its co-president structure, transitioning Erik Nordstrom to its sole chief executive officer. Pete Nordstrom has been named the president of Nordstrom Inc. and chief brand officer. Their new roles reflect their current and ongoing responsibilities. Both Erik and Pete Nordstrom will remain on the company’s board of directors.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JWN | NORDSTROM INC. | 22.87 | -0.15 | -0.65% |
The decision to position Erik and Pete Nordstrom in their respective roles comes in the midst of a board of directors overhaul by the luxury department store chain. The board will reduce its directors from 11 to 10 over the next two years, and current board members Kevin Turner and Gordon Smith have chosen not to seek re-election. Their terms will conclude at the company’s annual shareholders meeting on May 20.
Nordstrom added its board is working with an external executive search firm for director candidates to fill their seats. It has also introduced a 10-year term limit for independent directors.
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Along with changes to its governing structure, Nordstrom released its fourth-quarter report from 2019. The company saw a net sales growth of 1.3 percent, improving by more than 400 basis points from year-to-date trends, with growth in Nordstrom’s Full-Price and Off-Price businesses. In Full-Price, net sales decreased by 3.5 percent. In Off-Price, net sales increased by 0.2 percent. The company also saw overall growth in net earnings of $496 million compared with $564 million for 2018.
Peter and Erik Nordstrom are brothers and great-grandsons of John W. Nordstrom, who co-founded the store.