Nordstrom CEO says entering Q2 'in a position of strength'

"We successfully strengthened our financial flexibility by increasing liquidity, lowering inventory by more than 25 percent from last year and significantly reducing our cash burn by more than 40 percent from March into April. We're entering the second quarter in a position of strength, adding to our confidence that we have sufficient liquidity to successfully execute our strategy in 2020 and over the longer term," said Erik Nordstrom, CEO of Nordstrom, Inc. The company added: "The company entered fiscal 2020 with cash of approximately $850 million and increased its position to approximately $1.4 billion by the end of the first quarter. The company significantly reduced its cash burn and took early actions to increase liquidity. Nordstrom drew down and amended its $800 million revolver; issued $600 million in senior secured notes; and suspended dividends and share repurchases. In addition to its planned expense savings of $200 to $250 million, the company is on track to deliver further cash savings of more than $500 million in operating expenses, capital expenditures and working capital in fiscal 2020. These savings include a reduction in non-occupancy overhead expenses of approximately 20 percent on an annualized basis. The inventory reduction of more than 25 percent from last year resulted from the company's efforts during the quarter to decrease receipts by approximately 30 percent, stimulate demand through increased marketing and promotions and utilize store fulfillment capabilities. This favorable inventory position enables the company to bring in newness for customers beginning in June."