Thank you all. I've only had this issue with Jockey brand underwear, but at least that holds up to machine washing in hot water. And even then had to be washed 3-4 times for the smell to fade. Sweaters won't stand up to that.
They are going back, and it's disappointing since they are the main things I was looking for in the sale. It really feels like the brand and/or Nordstrom cheaped out on these, along the lines of brands making lower quality items intentionally for outlet instead of for the regular store. (Looking at you, J Crew and Coach).
Another cheaped out clue, they did come in a large plastic ziplock bag, which is pretty bizarre for Nordstrom packaging. kkards, that might be a small part of it so thanks for your thoughts, but it is not the main issue. It's definitely a dye and chemical smell in the sweaters themselves. Maybe concentrated by living in a plastic bag but it isn't the bag itself.
April and Janet, agree, and thanks for the confirmation. This smell won't be easy to eradicate. With my allergic contact dermatitis this is just a no-go with an item that can't be vigorously washed. Thanks Angie...Next! But boo!