For Immediate Release MEDIA CONTACT:
February 17, 2000 Brooke White
(206)373-3030
INVESTOR CONTACT:
Bob Adams
(206)373-4034
NORDSTROM REPORTS 1999 EARNINGS PER SHARE OF $1.46
SEATTLE, Wash. - Feb. 17, 2000 - Nordstrom Inc. (NYSE: JWN) today reported net earnings of $202.6 million,
or $1.46 per diluted share, for the 1999 fiscal year (ended
January 31, 2000). Fiscal 1999 results were reduced $10
million, pre-tax ($.04 per share), by charges taken in the
third quarter related principally to a workforce reduction
and discontinued project write-offs in the Company?s
information technology services area. Before these
charges, fiscal 1999 diluted earnings per share rose 6.4
percent, to $1.50.
Net sales for fiscal 1999 increased 1.9 percent, to
$5.1 billion, compared to fiscal 1998. Sales in comparable
stores declined 1.1 percent for the year.
?Our 1999 results reflect a year in which we
established a solid foundation for the future,? said
Chairman and Chief Executive Officer John Whitacre. ?We
are listening more closely to our customers, in order to be
more responsive to fashion trends and to make our stores
easier and more fun to shop.?
Fourth-quarter 1999 diluted earnings per share rose
6.4 percent, to $.50, compared to the fourth quarter of
1998. Fourth quarter net income of $66.5 million was flat
compared to the fourth quarter of 1998. Total sales in the
1999 fourth quarter, of $1.5 billion, were up 5.9 percent
compared to the 1998 fourth quarter, while sales in
comparable stores increased 2.0 percent.
?We are encouraged by the fourth-quarter growth in
comparable-store sales, and the fact that this result was
positive in all three months,? Whitacre said.
Fourth quarter 1999 sales and pre-tax operating
loss of the company?s NORDSTROM.com subsidiary, which
includes the Internet and catalog business, were $68.9
million and $15.2 million, respectively, compared to $52.1
million and $1.1 million, respectively, for the 1998 fourth
quarter. Fiscal 1999 sales and pre-tax operating loss of
NORDSTROM.com were $209.9 million and $35.7 million,
respectively, compared to $193.8 million and $17.7 million,
respectively, for 1998.
During 1999 Nordstrom opened four full-line
stores: in Norfolk, Va.; Providence, R.I.; Mission Viejo,
Calif.; and Columbia, Md. The Company also opened three
Rack stores: in Sacramento, Calif.; Brea, Calif.; and
Gaithersburg, Md. Additionally, a replacement full-line
store was opened in Spokane, Wash., and a replacement Rack
was opened in Lynnwood, Wash.
In 2000, Nordstrom plans to add full-line stores in
Atlanta; Dallas; Denver; Sacramento, Calif.; Chicago; and
Boca Raton, Fla. The Company also plans to open Rack stores this year in Atlanta; Honolulu; Spokane, Wash.;
Scottsdale, Ariz.; and two in the Los Angeles area.
Nordstrom, Inc. is one of the nation?s leading
fashion specialty retailers, with 104 stores located in 23
states, including 71 full-line stores, 27 Nordstrom Racks,
three Fa‡onnable boutiques, two free-standing shoe stores,
and one clearance store. The Company also serves customers
through its online presence at NORDSTROM.com and
NORDSTROMshoes.com, as well as through its direct mail
catalogs.
Total square footage of the Company?s stores was
14,487,000 at January 31, 2000.
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 predict fashion trends, consumer
apparel buying patterns, the company?s ability to 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.
Our 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.
###
NORDSTROM, INC.
CONSOLIDATED STATEMENTS OF EARNINGS - 4th Qtr
(unaudited; amounts in thousands, except per share data and percentages)
3 Months % of Sales 3 Months % of Sales
ended (except as ended (except as
01/31/00 indicated) 01/31/99 indicated)
Net sales $1,531,609 100.0 $1,446,042 100.0
Expenses
Cost of sales and
related buying & occupancy 1,010,372 66.0 958,302 66.3
Selling, general
and administrative 432,072 28.2 388,262 26.8
Interest, net 12,813 0.8 13,090 0.9
Total costs and expenses 1,455,257 95.0 1,359,654 94.0
Service charge income
and other, net 32,795 2.1 22,261 1.5
Earnings before income taxes 109,147 7.1 108,649 7.5
Income taxes 42,600 39.0* 42,100 38.7*
*as a percent of earnings before income taxes
Net earnings $ 66,547 4.3 $ 66,549 4.6
Earnings per share
Basic $ 0.50 $ 0.47
Diluted $ 0.50 $ 0.47
ADDITIONAL DATA
Average number
of shares outstanding
Basic 133,482 141,876
Diluted 133,782 142,646
Gross margin $ 521,237 34.0 $ 487,740 33.7
NORDSTROM, INC.
CONSOLIDATED STATEMENTS OF EARNINGS - Year-to-Date
(unaudited; amounts in thousands, except per share data and percentages)
Year % of Sales Year % of Sales
ended (except as ended (except as
01/31/00 indicated) 01/31/99 indicated)
Net sales $ 5,124,223 100.0 $ 5,027,890 100.0
Expenses
Cost of sales and
related buying & occupancy 3,359,760 65.5 3,344,945 66.5
Selling, general
and administrative 1,491,040 29.1 1,405,270 28.0
Interest, net 50,396 1.0 47,091 0.9
Total costs and expenses 4,901,196 95.6 4,797,306 95.4
Service charge income
and other, net 109,030 2.1 107,139 2.1
Earnings before income taxes 332,057 6.5 337,723 6.7
Income taxes 129,500 39.0* 131,000 38.8*
*as a percent of earnings before income taxes
Net earnings $ 202,557 4.0 $ 206,723 4.1
Earnings per share
Basic $ 1.47 $ 1.41
Diluted $ 1.46 $ 1.41
ADDITIONAL DATA
Average number
of shares outstanding
Basic 137,815 146,241
Diluted 138,425 146,858
Inventory $ 800,990 $ 750,269
Gross margin $ 1,764,463 34.5 $ 1,682,945 33.5
1999 sales 3 months Year
(compared to prior-year period) ended ended
November December January 01/31/00 01/31/00
Comparable stores 1.1% 2.9% 1.7% 2.0% (1.1)%
Total 5.0% 6.4% 6.5% 5.9% 1.9% |
