SEATTLE, Wash. - August 16, 2001 - Nordstrom, Inc. (NYSE: JWN) today reported net earnings of $38.7 million, or $0.29 per diluted share, for the second quarter of its 2001 fiscal year, in line with both company guidance and consensus estimates. For the second quarter of 2000, net earnings and earnings per share were $45.4 million and $0.35, respectively. Last year’s second quarter earnings included an impairment charge of $10.5 million (pre-tax) related to the write-down of the Company’s 1998 investment in Streamline, Inc., which reduced earnings for that quarter $0.05 per share. The Company’s sales and selling, general and administrative expense performance improved for the second quarter ending July 31, 2001. However, these improvements were more than offset by above-plan markdowns relating to the clearance of excess inventory.

Net sales for the second quarter of 2001 rose 6.1 percent, to $1.55 billion, compared to sales of $1.46 billion in the same period in 2000. Sales in comparable stores increased 0.6 percent. The impact of calendar adjustments over the quarter is estimated to be negligible.

"Our second quarter was marked by progress in three areas," said Nordstrom President Blake Nordstrom. "We reversed a negative sales trend for both our Half Yearly and Anniversary sale events, we demonstrated improvement in our expense management efforts, and we better aligned inventory levels with sales levels. While we remain cautious about economic conditions, we believe that continued focus on customers, merchandise and expenses is key to improving our financial results."

Year-to-date earnings per share of $0.47 for the six-month period ended July 31, 2001, declined 21.7 percent compared to earnings per share of $0.60 for the same period in 2000. Year-to-date net earnings were $63.5 million, a decline of 18.8 percent from net earnings of $78.2 million during the same period in 2000. Year-to-date net sales of $2.76 billion increased 5.9% from the same period in 2000. Reported year-to-date same store sales declined 1.3 percent. The impact of calendar variations is negligible.

During the second quarter of fiscal 2001, the Company did not open any stores. Throughout the remainder of the year ending January 31, 2002, Nordstrom expects to open three full-line stores in Columbus, Ohio, Tampa, Fla., and Chandler, Ariz., and six Nordstrom Racks. For the entire year, gross square footage is expected to increase approximately 6 percent. Total square footage of the Company’s stores was 16,307,000 as of July 31, 2001, compared to 14,858,000 as of July 31, 2000.

For the third quarter of 2001, the Company anticipates diluted earnings per share in the range of $0.16 to $0.19, primarily reflecting caution regarding sales. For the fiscal year ending January 31, 2002, the Company affirms prior guidance of $0.97 to $1.01 per share.

Celebrating 100 years of service, Nordstrom, Inc. is one of the nation's leading fashion specialty retailers, with 123 US stores located in 24 states. Founded in 1901 as a shoe store in Seattle, Nordstrom today operates 77 full-line stores, 40 Nordstrom Racks, three U.S. Façonnable boutiques, two freestanding shoe stores, and one clearance store. Nordstrom also operates 21 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.

Consolidated Statements of Earnings

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 store openings and distribution channels, planned capital expenditures, and trends in company operations. Actual future results and trends may differ materially 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.
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.