SEATTLE, Wash. - November 15, 2001 - Nordstrom, Inc. (NYSE: JWN) today reported net earnings of $10.5 million, or $0.08 per diluted share, for the third quarter of its 2001 fiscal year, exceeding both company guidance and consensus estimates. For the third quarter of 2000, net loss and loss per share of $3.3 million and $0.03, respectively, were unfavorably affected by certain non-recurring charges totaling $44.0 million, pre-tax, or $0.21 per share.

Net sales for the third quarter of 2001 declined 1.8 percent, to $1.2 billion, compared to sales of $1.3 billion in the same period in 2000. Sales in comparable stores decreased 5.7 percent. Excluding the Fall Sale event, which did not occur in 2000, total sales for the quarter declined 4.0 percent and comparable store sales decreased 8.2 percent.

Excluding 2000 third quarter non-recurring charges, the company reduced its selling, general and administrative expenses by $22.2 million, or from 33.4 percent of sales in the third quarter last year to 32.2 percent of sales this year.

"During a difficult retail environment, I am pleased with how quickly and successfully our team responded," said Nordstrom President Blake Nordstrom. "We brought traffic into our stores and stimulated sales with the Fall Sale event, while managing inventory to a level that positions us well for the fourth quarter."

Nordstrom also noted the decline in expenses as an area of improvement. "One of our company's priorities is to better manage expenses," he said, "and I am pleased with the progress we are making."

Year-to-date net earnings and earnings per share for the nine-month period ended October 31, 2001, were $73.9 million and $0.55 respectively, compared to net earnings and earnings per share of $74.9 million and $0.58 for the same period in 2000. Non-recurring, pre-tax charges of $54.4 million, or $0.26 per share, were included in 2000 year-to-date results.

Year-to-date net sales of $4.0 billion increased 3.4 percent from the same period in 2000. Reported year-to-date same store sales declined 2.7 percent. The impact of calendar variations is negligible.

Nordstrom opened three full-line stores during the third quarter of 2001 — Columbus, Ohio; Tampa, Fla.; and Chandler, Ariz. The company also opened five Nordstrom Rack stores during the quarter, in Roseville, Calif.; Henderson, Nev.; San Francisco, Calif.; Grand Rapids, Mich.; and Oxnard, Calif. The company’s final new store for 2001 is a Nordstrom Rack, which opened today in Dulles, Va. Gross square footage for the year increased approximately 6.1% from 16,056,000 to 17,033,000.

For the fourth quarter of 2001, the Company anticipates diluted earnings per share in the range of $0.27 to $0.31, versus $0.21, excluding non-recurring charges, in the prior year, reflecting caution regarding sales and merchandise margins, and continuing improvement in selling, general and administrative expense.

Celebrating 100 years of service, Nordstrom, Inc. is one of the nation's leading fashion specialty retailers, with 132 US stores located in 25 states. Founded in 1901 as a shoe store in Seattle, Nordstrom today operates 80 full-line stores, 45 Nordstrom Racks, four U.S. Façonnable boutiques, two freestanding shoe stores, and one clearance store. Nordstrom also operates 23 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.