SEATTLE - November 19, 2002 - Nordstrom, Inc. (NYSE: JWN) today reported net earnings of $18.4 million, or $0.14 per diluted share, for the third quarter ending October 31, 2002. For the third quarter of 2001, net earnings and earnings per share were $10.5 million and $0.08, respectively. The third quarter improvement in sales was in-line with company guidance. However, its gross profit, although markedly higher than last year, was less than anticipated, while selling and distribution expenses were slightly higher than anticipated.

Net sales for the third quarter of 2002 increased 6.8 percent, to $1.3 billion, compared to sales of $1.2 billion in the same period in 2001. On a calendar basis, same-store sales increased 2.6 percent.

"We continue to make progress with our top-line," said President Blake Nordstrom. "Comp-store sales is an important measure and we are encouraged that it has been positive for six consecutive months. Our efforts are focused on maintaining this momentum while achieving sustained improvement in operating performance."

Year-to-date net earnings and earnings per share for the nine-month period ended October 31, 2002, were $30.2 million and $0.22, respectively, compared to net earnings and earnings per share of $73.9 million and $0.55 for the same period in 2001. Excluding $71.0 million (net of tax) in non-recurring and impairment charges, 2002 year-to-date net earnings and earnings per share for the period were $101.2 million and $0.75, respectively.

Year-to-date net sales of $4.2 billion increased 5.5 percent from the same period in 2001. On a calendar basis, year-to-date same-store sales increased 1.2 percent.

Nordstrom opened four full-line stores during the third quarter of 2002 - Dulles, Va.; St. Louis, Mo.; Coral Gables, Fla.; and Orlando, Fla. The company also opened one Rack store in Long Beach, Calif. and one Façonnable boutique in Coral Gables, Fla. The eighth and final full-line store planned for this fiscal year opened on November 1 in Las Vegas, Nev. Gross square footage for the year increased approximately 8.0 percent, from 17,048,000 to 18,428,000.

For the fourth quarter of 2002, the Company anticipates diluted earnings per share in the range of $0.40 to $0.44, versus $0.38 in the prior year. This reflects low single-digit comparable-store sales growth and moderate improvement in merchandise margins partially offset by a moderate increase in selling, general and administrative expenses on a percent to sales basis. For the fiscal year ending January 31, 2003, the Company is lowering its prior earnings per share guidance of $1.20 - $1.24 to $1.15 - $1.19, excluding non-recurring and impairment charges. The range of guidance reflects the Company's belief in its ability to continue its year-over-year progress in the fourth quarter.

Nordstrom, Inc. is one of the nation's leading fashion specialty retailers, with 143 US stores located in 27 states. Founded in 1901 as a shoe store in Seattle, Nordstrom today operates 88 full-line stores, 48 Nordstrom Racks, five U.S. Façonnable boutiques, one freestanding shoe store, and one clearance store. Nordstrom also operates 23 international Façonnable boutiques, primarily in Europe. Additionally, Nordstrom Direct 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 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 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.