SEATTLE, Wash. - Nov. 15, 2000 - Nordstrom Inc. (NYSE: JWN) today reported a net loss of $3.3 million, or $0.03 per share, for the third quarter of its 2000 fiscal year, compared to net earnings of $33.6 million, or $0.25 per share, for the 1999 third quarter.

Net earnings for the 2000 third quarter, which ended October 31, were impacted by previously announced non-recurring charges totaling $0.21 per share. That amount, pre-tax, includes a charge of $20.7 million related to the company's 1998 investment in Streamline.com, Inc., which was written down to its quoted market value of $1.7 million on Oct. 31; a provision of $13.0 million in estimated severance costs associated with senior management restructuring during the quarter; and a charge of $10.2 million for the write-off of certain information technology investments. The 1999 third quarter results were reduced $0.04 per share by charges related principally to restructuring in the company's information technology area.

Before the effects of the non-recurring charges in both years, third-quarter 2000 diluted earnings per share declined 37.9 percent from the 1999 third quarter. The earnings decrease resulted largely from increased markdowns, primarily in women's apparel, and increased selling, general and administrative expenses.

"We are committed to improving our results, and we are taking immediate action to do that," said Nordstrom President Blake Nordstrom. "We are focusing especially on re-energizing the sales floor, and achieving better merchandise execution and expense control."

Net sales for the 2000 third quarter were $1.25 billion, compared to $1.11 billion in the same period in 1999. Reported same-store sales for the 2000 third quarter rose 4.7 percent. Adjusting for the impact of event and calendar variations, same-store sales for the third quarter of 2000 were essentially flat compared to the third quarter of 1999.

Year-to-date net earnings and earnings per share for the nine-month period from Feb. 1 through Oct. 31, 2000, were $74.9 million and $0.58, respectively, compared to net earnings and diluted earnings per share of $136.0 million and $0.97 during the same period in 1999. One-time, pre-tax charges of $54.4 million, or $0.26 per share, were included in 2000 year-to-date results, compared to pre-tax charges of $10.0 million, or $0.04 per share, during the same period in 1999.

Year-to-date net sales of $3.85 billion increased 7.2 percent from the same period in 1999. Year-to-date same-store sales increased 1.2 percent.

Nordstrom opened four full-line stores during the third quarter of 2000 - near Dallas, Tex.; Denver, Col.; and Sacramento, Calif.; and in Chicago, Ill. The company also opened a store in Boca Raton, Fla., on Nov. 3, the first of several planned for the state of Florida.

The company also opened five Nordstrom Rack stores during the quarter, in Honolulu, Hi.; Spokane, Wash.; Oak Brook, Ill.; and Chandler and Scottsdale, Ariz.

Nordstrom, Inc. is one of the nation's leading fashion specialty retailers, with 120 US stores located in 24 states, including 77 full-line stores, 37 Nordstrom Racks, three Façonnable boutiques, two free-standing shoe stores, and one clearance store. Nordstrom now also operates 20 Façonnable boutiques, primarily in Europe. Additionally, Nordstrom serves customers through its online presence at http://www.nordstrom.com and through its direct mail catalogs.

Total square footage of the company's domestic stores was 15,971,000 as of Nov. 15, 2000.

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 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. 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.