SEATTLE, Wash. - October 9, 2001 - Nordstrom, Inc. (NYSE: JWN) today reduced its earnings guidance for its fiscal third quarter ending 10/31/01, reflecting the challenging economic and retail environment, and uncertain consumer demand following the events of September 11. The company now anticipates third quarter earnings per share in the $0.03 to $0.06 range compared to its previous third quarter earnings per share guidance of $0.17 to $0.20.

"Our business, like many others, has been impacted by the recent unprecedented events, which served to compound the softening of our business following July's Anniversary sale," said Nordstrom President Blake Nordstrom. "However, we are using all means within our control to manage our business through these uncertain times."

The company already has taken steps in response to business conditions, executing a Fall Sale Event, which ran from September 28 through October 8. The sale, which did not occur last year, was successful in driving traffic and generated a comparable-store increase at the full-line stores of approximately 15%. The company also implemented a workforce reduction intended to bring staffing levels in line with current business trends.

Over the balance of this fiscal year the company will focus on enhancing the quality-value relationship of its merchandise, maintaining inventory levels appropriate to sales trends and executing aggressively during its Half-Yearly Sale events for Women (Nov. 7-Nov. 18) and Men (Dec. 26-Jan. 5).

"We remain committed to our long-term business strategies, and over the near-term, we will continue to assess our business and make adjustments as needed," commented Nordstrom.

Nordstrom is holding a brief conference call Tuesday, October 9, 2001 at 1:30pm (PDT), to discuss the company's recent and planned near-term actions, and to update its third quarter guidance. The conference call may be heard live over the Internet by accessing Nordstrom's web site at www.nordstrom.com, then clicking on the "Investor Relations" option. A replay of the call will be available on Nordstrom's web site through November 8.

Celebrating 100 years of service, Nordstrom, Inc. is one of the nation's leading fashion specialty retailers, with 126 US stores located in 25 states. Founded in 1901 as a shoe store in Seattle, today Nordstrom operates 79 full-line stores, 41 Nordstrom Racks, three US Façonnable boutiques, two free-standing shoe stores, and one clearance store. Nordstrom also operates 22 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 store openings and distribution channels, planned capital expenditures, and trends in company operations. Actual future results and trends may differ materially depending upon a variety of factors including, but not limited to, the company's ability to source and manage appropriate inventory, predict fashion trends and consumer apparel buying patterns, and control costs and expenses; 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 effects of hostile activities on the domestic economy. The company's SEC reports may contain other information on these and other factors which could affect our financial results and cause actual results to differ from any forward-looking information we may provide.