SEATTLE, Wash. - February 21, 2002 - Nordstrom, Inc. (NYSE: JWN) today reported net earnings of $50.7 million, or $0.38 per diluted share, for the fourth quarter of its 2001 fiscal year. For the fourth quarter of 2000, net earnings and earnings per share were $27.0 million and $0.20, respectively. Last year’s fourth quarter earnings included an impairment charge of $1.7 million (pre-tax) related to the write-down of the Company’s 1998 investment in Streamline, Inc., which reduced earnings for the quarter $0.01 per share.

Net sales for the fourth quarter of 2001 declined 1.5 percent, to $1.6 billion, compared to sales of $1.7 billion in the same period in 2000. Sales in comparable stores decreased 3.4 percent.

Fourth quarter selling, general and administrative expenses declined $25.4 million from the same period last year, decreasing from 29.8 percent of sales in the fourth quarter last year to 28.8 percent of sales this year.

"During this past fiscal year we have worked hard to lay the groundwork for sustainable improvement in performance, and believe that progress has been made, most noticeably in the areas of expense management and inventory control," commented Nordstrom President, Blake Nordstrom. "As we look ahead to 2002, our primary focus will be driving sales growth, continuing our progress on operational disciplines and completing the implementation of our perpetual inventory system."

Net earnings and earnings per share for the twelve-month period ended January 31, 2002, were $124.7 million and $0.93 respectively, compared to net earnings and earnings per share of $101.9 million and $0.78 for the same period in 2000. Non-recurring, pre-tax charges of $56.0 million, or $0.26 per share, were included in 2000 year-to-date results.

Fiscal 2001 net sales of $5.6 billion increased 1.9 percent from fiscal 2000. Comparable-store sales in fiscal 2001 declined 2.9 percent. The impact of calendar variations was negligible.

Nordstrom opened four full-line stores during the fiscal 2001, eight Nordstrom Rack stores and one U.S. Façonnable boutique. Gross square footage for the year increased 6.2%, growing from 16,056,000 to 17,048,000. During fiscal year 2002 gross square footage is expected to increase 8% with the addition of eight full-line stores and four Nordstrom Rack stores.

For the first quarter of 2002, the Company anticipates diluted earnings per share in the range of $0.17 to $0.21, versus $0.18 in the prior year. The increase reflects continuing improvement in merchandise margins and selling, general and administrative expenses, tempered by comparable- store sales weakness. For the full-year of 2002, the Company estimates diluted earnings per share in the range of $1.10 to $1.15.

Nordstrom, Inc. is one of the nation's leading fashion specialty retailers, with 131 US stores located in 25 states. Founded in 1901 as a shoe store in Seattle, Nordstrom today operates 80 full-line stores, 44 Nordstrom Racks, four U.S. Façonnable boutiques, two freestanding shoe stores, and one clearance store. Nordstrom also operates 24 international Façonnable boutiques, primarily in Europe. Additionally, Nordstrom serves customers through its online presence at http://www.nordstrom.com and through its direct mail catalogs.

Certain statements in this news release contain "forward-looking" information (as defined in the Private Securities Litigation Reform Act of 1995) that involves risks and uncertainties, including anticipated earnings, store openings and distribution channels, planned capital expenditures, and trends in company operations. Actual future results and trends may differ materially from historical results or current expectations depending upon factors including, but not limited to, the company’s ability to predict fashion trends, consumer apparel buying patterns, the company’s ability to control costs, weather conditions, hazards of nature such as earthquakes and floods, trends in personal bankruptcies and bad debt write-offs, employee relations, the company’s ability to continue its expansion plans, and the impact of economic and competitive market forces, including the impact of the recent terrorist activity on the company, its customers and the industry.
Our SEC reports may contain other information on these and other factors that could affect our financial results and cause actual results to differ materially from any forward-looking information we may provide.