HauteLook will receive $180 million in Nordstrom stock, with the possibility for an additional $90 million, depending on the retention of the current leadership team and company performance. The decision underscores the growing important of daily deal sites in the retail world.
As part of the deal, the Los Angeles-based HauteLook will continue to operate independently, with a separate brand and website. Nordstrom is the first major brick and mortar retailer to acquire a daily sale site. The deal is expected to close in the first quarter of this year.
More than 4 million people have signed up for HauteLook’s daily e-mail alerts since its creation in 2007. HauteLook and other daily “flash-sale” sites like Gilt Groupe, RueLaLa and ideeli could make $900 in revenue this year, The Seattle Times reported today.
Along with the announcement, Nordstrom announced net earnings of $232 million for the fourth quarter, up 35 percent from the same quarter a year before.
For the full year, made $613 million in profits on record sales of $9.31 billion.