US department store chain Nordstrom has announced that it will discontinue its operations in Canada by June this year.

The decision is part of the company’s efforts to drive long-term profitable growth and enhance value for its shareholders.

It was reported as part of Nordstrom‘s fiscal 2022 (FY22) results, for which the retailer posted net earnings of $245m and diluted earnings per share (EPS) of $1.51.

Nordstrom operates six Nordstrom stores and seven Nordstrom Rack stores in Canada, as well as its e-commerce website,

The retailer currently has around 2,500 employees in the country.

Nordstrom closed its e-commerce platform on 2 March, while its Nordstrom and Nordstrom Rack stores across Canada are scheduled to close by late June.

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In relation to the closure, the company expects to report pre-tax charges of around $300m to $350m for the first quarter of fiscal 2023 (FY23).

It also expects its net sales to drop by $400m and its earnings before interest and taxes (EBIT) to improve by $35m in FY23.

On 2 March, Nordstrom obtained an Initial Order from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA) to carry out the wind-down.

The company’s Canadian operations will be deconsolidated from its financial statements as of the date of the CCAA filing.

Nordstrom CEO Erik Nordstrom said: “We regularly review every aspect of our business to make sure that we are set up for success.

“We entered Canada in 2014 with a plan to build and sustain a long-term business there.

“Despite our best efforts, we do not see a realistic path to profitability for the Canadian business.

“We want to thank our team for their performance and dedication in serving customers in Canada.

“This decision will simplify our structure, intensify focus on our growth and profitability goals and position us to create greater value for our shareholders.”