Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
May 01, 2021 | May 28, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 1, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-15059 | |
Entity Registrant Name | NORDSTROM, INC. | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-0515058 | |
Entity Address, Address Line One | 1617 Sixth Avenue | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98101 | |
City Area Code | 206 | |
Local Phone Number | 628-2111 | |
Title of 12(b) Security | Common stock, without par value | |
Trading Symbol | JWN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 158,898,676 | |
Entity Central Index Key | 0000072333 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --01-29 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 2,921 | $ 2,026 |
Credit card revenues, net | 88 | 93 |
Total revenues | 3,009 | 2,119 |
Cost of sales and related buying and occupancy costs | (2,019) | (1,810) |
Selling, general and administrative expenses | (1,075) | (1,122) |
Loss before interest and income taxes | (85) | (813) |
Interest expense, net | (137) | (34) |
Loss before income taxes | (222) | (847) |
Income tax benefit | 56 | 326 |
Net loss | $ (166) | $ (521) |
Loss per share: | ||
Basic (in dollars per share) | $ (1.05) | $ (3.33) |
Diluted (in dollars per share) | $ (1.05) | $ (3.33) |
Weighted-average shares outstanding: | ||
Basic (in shares) | 158.5 | 156.4 |
Diluted (in shares) | 158.5 | 156.4 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net loss | $ (166) | $ (521) |
Foreign currency translation adjustment | 10 | (24) |
Post retirement plan adjustments, net of tax | 1 | 2 |
Comprehensive net loss | $ (155) | $ (543) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | May 01, 2021 | Jan. 30, 2021 | May 02, 2020 |
Assets | |||
Cash and cash equivalents | $ 377 | $ 681 | $ 1,355 |
Accounts receivable, net | 238 | 245 | 154 |
Merchandise inventories | 1,961 | 1,863 | 1,489 |
Prepaid expenses and other | 923 | 853 | 669 |
Total current assets | 3,499 | 3,642 | 3,667 |
Land, property and equipment (net of accumulated depreciation of $7,322, $7,159 and $6,683) | 3,642 | 3,732 | 3,974 |
Operating lease right-of-use assets | 1,560 | 1,581 | 1,722 |
Goodwill | 249 | 249 | 249 |
Other assets | 383 | 334 | 357 |
Total assets | 9,333 | 9,538 | 9,969 |
Liabilities and Shareholders’ Equity | |||
Borrowings under revolving line of credit | 200 | 0 | 800 |
Accounts payable | 1,676 | 1,960 | 1,125 |
Accrued salaries, wages and related benefits | 330 | 352 | 280 |
Current portion of operating lease liabilities | 246 | 260 | 243 |
Other current liabilities | 1,056 | 1,048 | 1,351 |
Current portion of long-term debt | 500 | 500 | 0 |
Total current liabilities | 4,008 | 4,120 | 3,799 |
Long-term debt, net | 2,847 | 2,769 | 3,264 |
Non-current operating lease liabilities | 1,662 | 1,687 | 1,836 |
Other liabilities | 650 | 657 | 673 |
Commitments and contingencies (Note 5) | |||
Shareholders’ equity: | |||
Common stock, no par value: 1,000 shares authorized; 158.9, 157.8 and 157.0 shares issued and outstanding | 3,221 | 3,205 | 3,148 |
Accumulated deficit | (2,996) | (2,830) | (2,661) |
Accumulated other comprehensive loss | (59) | (70) | (90) |
Total shareholders’ equity | 166 | 305 | 397 |
Total liabilities and shareholders’ equity | $ 9,333 | $ 9,538 | $ 9,969 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | May 01, 2021 | Jan. 30, 2021 | May 02, 2020 |
Assets | |||
Accumulated depreciation | $ 7,322 | $ 7,159 | $ 6,683 |
Shareholders' equity | |||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common stock, shares authorized | 1,000 | 1,000 | 1,000 |
Common stock, shares issued | 158.9 | 157.8 | 157 |
Common stock, shares outstanding | 158.9 | 157.8 | 157 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Common stock, balance, beginning of period at Feb. 01, 2020 | $ 3,129 | |||
Common stock | ||||
Issuance of common stock under stock compensation plans | 11 | |||
Stock-based compensation | 8 | |||
Common stock, balance, end of period at May. 02, 2020 | $ 3,148 | 3,148 | ||
Accumulated deficit, balance, beginning of period at Feb. 01, 2020 | $ (2,082) | |||
Accumulated deficit | ||||
Net loss | (521) | (521) | ||
Dividends | (58) | |||
Accumulated deficit, balance, end of period at May. 02, 2020 | (2,661) | (2,661) | ||
Accumulated other comprehensive loss, balance, beginning of period at Feb. 01, 2020 | $ (68) | |||
Accumulated other comprehensive loss | ||||
Other comprehensive income (loss) | (22) | |||
Accumulated other comprehensive loss, balance, end of period at May. 02, 2020 | (90) | (90) | ||
Total Shareholders’ Equity at May. 02, 2020 | $ 397 | |||
Accumulated other comprehensive loss | ||||
Dividends per share | $ 0.37 | |||
Common stock, balance, beginning of period at Jan. 30, 2021 | $ 3,205 | 3,205 | ||
Common stock | ||||
Issuance of common stock under stock compensation plans | 7 | |||
Stock-based compensation | 9 | |||
Common stock, balance, end of period at May. 01, 2021 | 3,221 | $ 3,221 | ||
Accumulated deficit, balance, beginning of period at Jan. 30, 2021 | (2,830) | (2,830) | ||
Accumulated deficit | ||||
Net loss | (166) | (166) | ||
Dividends | 0 | |||
Accumulated deficit, balance, end of period at May. 01, 2021 | (2,996) | $ (2,996) | ||
Accumulated other comprehensive loss, balance, beginning of period at Jan. 30, 2021 | (70) | (70) | ||
Accumulated other comprehensive loss | ||||
Other comprehensive income (loss) | 11 | |||
Accumulated other comprehensive loss, balance, end of period at May. 01, 2021 | (59) | $ (59) | ||
Total Shareholders’ Equity at May. 01, 2021 | $ 166 | |||
Accumulated other comprehensive loss | ||||
Dividends per share | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Operating Activities | ||
Net loss | $ (166) | $ (521) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expenses | 162 | 176 |
Asset impairment | 0 | 117 |
Right-of-use asset amortization | 43 | 44 |
Deferred income taxes, net | 8 | (54) |
Stock-based compensation expense | 22 | 13 |
Other, net | 86 | 2 |
Change in operating assets and liabilities: | ||
Accounts receivable | 7 | 25 |
Merchandise inventories | (16) | 228 |
Prepaid expenses and other assets | (126) | (393) |
Accounts payable | (296) | (292) |
Accrued salaries, wages and related benefits | (22) | (227) |
Other current liabilities | 7 | 167 |
Lease liabilities | (81) | (65) |
Other liabilities | 8 | 2 |
Net cash used in operating activities | (364) | (778) |
Investing Activities | ||
Capital expenditures | (126) | (131) |
Other, net | 16 | 5 |
Net cash used in investing activities | (110) | (126) |
Financing Activities | ||
Proceeds from revolving line of credit | 200 | 800 |
Proceeds from long-term borrowings | 675 | 600 |
Principal payments on long-term borrowings | (600) | 0 |
(Decrease) increase in cash book overdrafts | (17) | 83 |
Cash dividends paid | 0 | (58) |
Proceeds from issuances under stock compensation plans | 7 | 11 |
Tax withholding on share-based awards | (13) | (8) |
Make-whole payment and other, net | (85) | (11) |
Net cash provided by financing activities | 167 | 1,417 |
Effect of exchange rate changes on cash and cash equivalents | 3 | (11) |
Net (decrease) increase in cash and cash equivalents | (304) | 502 |
Cash and cash equivalents at beginning of period | 681 | 853 |
Cash and cash equivalents at end of period | 377 | 1,355 |
Cash paid during the period for: | ||
Income taxes, net | 3 | 0 |
Interest, net of capitalized interest | $ 63 | $ 34 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
May 01, 2021 | |
Basis of Presentation [Abstract] | |
Basis Of Presentation | NOTE 1: BASIS OF PRESENTATION The accompanying Condensed Consolidated Financial Statements include the balances of Nordstrom, Inc. and its subsidiaries. All intercompany transactions and balances are eliminated in consolidation. The interim Condensed Consolidated Financial Statements have been prepared on a basis consistent in all material respects with the accounting policies described and applied in our 2020 Annual Report and reflect all adjustments of a normal recurring nature that are, in management’s opinion, necessary for the fair presentation of the results of operations, financial position and cash flows for the periods presented. The Condensed Consolidated Financial Statements as of and for the periods ended May 1, 2021 and May 2, 2020 are unaudited. The Condensed Consolidated Balance Sheet as of January 30, 2021 has been derived from the audited Consolidated Financial Statements included in our 2020 Annual Report. The interim Condensed Consolidated Financial Statements should be read together with the Consolidated Financial Statements and related footnote disclosures contained in our 2020 Annual Report. Seasonality Our business, like that of other retailers, is subject to seasonal fluctuations and cyclical trends in consumer spending. Our sales are typically higher in our second quarter, which usually includes our Anniversary Sale, and the holidays in the fourth quarter. As a result of COVID-19, the Anniversary Sale was moved to August in 2020, which fell entirely in our third fiscal quarter. Results for any one quarter may not be indicative of the results that may be achieved for a full fiscal year. We plan our merchandise receipts to coincide with expected sales trends and other supply chain factors. For instance, our merchandise purchases and receipts increase prior to the Anniversary Sale, and we purchase and receive a larger amount of merchandise in the fall as we prepare for the holiday shopping season (from late November through December). Consistent with our seasonal fluctuations, our working capital requirements have historically increased during the months leading up to the Anniversary Sale and the holidays as we purchase inventory in anticipation of increased sales. Use of Estimates The preparation of financial statements in conformity with GAAP in the U.S. requires that we make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities during the reporting period. Uncertainties regarding such estimates and assumptions are inherent in the preparation of financial statements and actual results may differ from these estimates and assumptions. Our most significant accounting judgments and estimates include revenue recognition, inventory valuation, long-lived asset recoverability and income taxes, all of which involve assumptions about future events. We may be unable to accurately predict the ongoing impact of COVID-19 going forward and as a result our estimates may change in the near term. Land, Property and Equipmen t Our net non-cash investing activities primarily related to technology expenditures resulted in a decrease to accounts payable of $44 in 2021. Long-Lived Assets In the first quarter of 2020, as we optimized our mix of physical and digital assets to align with longer-term customer trends, we closed 16 Nordstrom stores. In conjunction with these closures, we incurred non-cash impairment charges on long-lived tangible and ROU assets to adjust the carrying values to their estimated fair value. The following table provides details related to asset impairment charges as a result of COVID-19: Quarter Ended May 2, 2020 Long-lived asset impairment 1 $94 Operating lease ROU asset impairment 1 23 Total asset impairment $117 1 As of May 2, 2020, the carrying value of the applicable long-lived and operating lease ROU assets after impairment was $15 and $6. These charges are primarily included in our Retail segment SG&A expense on the Condensed Consolidated Statement of Earnings. Income Taxes We recorded $576 and $275 in current taxes receivable as of May 1, 2021 and May 2, 2020, which is classified in prepaid expenses and other on the Condensed Consolidated Balance Sheet. In addition, we recorded $60 and $2 in noncurrent taxes receivable as of May 1, 2021 and May 2, 2020, which is classified in other assets on the Condensed Consolidated Balance Sheet. The current and noncurrent income tax receivables are primarily associated with the loss carryback provision of the CARES Act. Severance In the first quarter of 2020, we recorded $88 of restructuring costs in connection with our regional and corporate reorganization, including $25 recorded in cost of sales and related buying and occupancy costs and $63 in SG&A on the Condensed Consolidated Statement of Earnings. Leases We incurred operating lease liabilities arising from the commencement of lease agreements of $33 for the quarter ended May 1, 2021 and $37 for the quarter ended May 2, 2020. Reclassification We reclassified our fiscal 2020 Condensed Consolidated Statement of Cash Flows to conform with current period presentation. To adjust our net loss to reconcile to operating activity cash flows, we present depreciation and amortization separate from other, net, which includes the “ make-whole ” premium in the first quarter of 2021 (see Note 3: Debt and Credit Facilities). Recent Accounting Pronouncements |
Revenue
Revenue | 3 Months Ended |
May 01, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 2: REVENUE Contract Liabilities Contract liabilities represent our obligation to transfer goods or services to customers and include deferred revenue for The Nordy Club (including points and Nordstrom Notes) and gift cards. Our contract liabilities are classified as current on the Condensed Consolidated Balance Sheets and are as follows: Contract Liabilities Balance as of February 1, 2020 $576 Balance as of May 2, 2020 489 Balance as of January 30, 2021 478 Balance as of May 1, 2021 436 Revenues recognized from our beginning contract liability balance were $114 for the quarter ended May 1, 2021 and $130 for the quarter ended May 2, 2020. Disaggregation of Revenue The following table summarizes our disaggregated net sales: Quarter Ended May 1, 2021 May 2, 2020 Nordstrom $1,854 $1,357 Nordstrom Rack 1,067 669 Total net sales $2,921 $2,026 Digital sales as a % of total net sales 46 % 54 % The following table summarizes the percent of net sales by merchandise category: Quarter Ended May 1, 2021 May 2, 2020 Women’s Apparel 31 % 33 % Shoes 26 % 24 % Women’s Accessories 14 % 12 % Men’s Apparel 12 % 12 % Beauty 11 % 12 % Kids’ Apparel 4 % 4 % Other 2 % 3 % Total net sales 100 % 100 % |
Debt And Credit Facilities
Debt And Credit Facilities | 3 Months Ended |
May 01, 2021 | |
Debt Disclosure [Abstract] | |
Debt And Credit Facilities | NOTE 3: DEBT AND CREDIT FACILITIES Debt During the first quarter of 2021, we issued $250 aggregate principal amount of 2.3% senior notes due April 2024 and $425 aggregate principal amount of 4.25% senior notes due August 2031. These notes are unsecured and may be redeemed at any time in whole or in part. The April 2024 notes can be redeemed at par starting in April 2022. With the net proceeds of these new notes, together with cash on hand, we retired our $600 Secured Notes. We recorded $88 related to the redemption in interest expense, net, which primarily consisted of a one-time payment of $78 for a “make-whole” premium, and the write-off of unamortized balances associated with the debt discount and issuance costs. The make-whole payment was not included in cash paid during the period for interest, net of capitalized interest. As a result of this redemption, our outstanding long-term debt is unsecured and all real estate will be unencumbered. Credit Facilities During the first quarter of 2021, we borrowed $200 and amended our existing Revolver. Under the Revolver, we are in a “Collateral Period” if our Leverage Ratio is greater than four or our unsecured debt is rated below BBB- with a stable outlook at Standard & Poor’s or Baa3 with a stable outlook at Moody’s. In the Collateral Period, any borrowings under our Revolver will be secured by substantially all our personal property and we will be subject to asset coverage and minimum liquidity covenants, as well as a fixed charge coverage covenant. If our Leverage Ratio is below four and our unsecured debt is rated at or above BBB- with a stable outlook at Standard & Poor’s or Baa3 with a stable outlook at Moody’s, any borrowings under our Revolver will be unsecured, we will not be subject to the above covenants and the restrictions on dividend payments and share repurchases will be removed. In May 2021, subsequent to quarter end, we completely repaid $200 on our Revolver. Under our Revolver amendment, we created flexibility for dividends and share repurchases during the Collateral Period, provided no default or event of default exists as a result of such payments, the pro-forma Leverage Ratio as of the most recent fiscal quarter is less than 3.75, pro-forma liquidity at the date of such payment is at least $600, and the amount of such payments do not exceed the amount of the corresponding fiscal quarter of 2019. Additionally, the “make-whole” premium and unamortized deferred bond issuance costs related to the redemption of the $600 Secured Notes is excluded from the definition of interest expense. The Revolver expires in September 2023 and is classified in total current liabilities on the Condensed Consolidated Balance Sheet. As of May 1, 2021, we had $200 outstanding under this facility, our borrowings under the Revolver were classified as secured as our Leverage Ratio exceeded four and we did not meet or exceed our credit rating threshold. We met all other financial covenant measures for the quarter. Provided that we obtain written consent from the lenders, we have the option to increase the Revolver by up to $200, to a total of $1,000, and two options to extend the Revolver by one year. The Revolver contains customary representations, warranties, covenants and terms, including paying a variable rate of interest and a commitment fee based on our debt rating. The Revolver is available for working capital, capital expenditures and general corporate purposes. As a result of our borrowings under the Revolver, the full capacity of our $800 commercial paper program is not available to us at this time. When available, the program allows us to use the proceeds to fund operating cash requirements. Under the terms of the commercial paper agreement, we pay a rate of interest based on, among other factors, the maturity of the issuance and market conditions. The issuance of commercial paper has the effect of reducing available liquidity under the Revolver by an amount equal to the principal amount of commercial paper outstanding. As of May 1, 2021, we had no issuances outstanding under our commercial paper program. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
May 01, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 4: FAIR VALUE MEASUREMENTS We disclose our financial assets and liabilities that are measured at fair value in our Condensed Consolidated Balance Sheets by level within the fair value hierarchy as defined by applicable accounting standards: Level 1: Quoted market prices in active markets for identical assets or liabilities Level 2: Other observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs that cannot be corroborated by market data that reflect the reporting entity’s own assumptions Financial Instruments Measured at Carrying Value Financial instruments measured at carrying value on a recurring basis include cash and cash equivalents, accounts receivable, accounts payable and our Revolver, which approximate fair value due to their short-term nature. Long-term debt is recorded at carrying value. If long-term debt was measured at fair value, we would use quoted market prices of the same or similar issues, which is considered a Level 2 fair value measurement. The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities: May 1, 2021 January 30, 2021 May 2, 2020 Carrying value of long-term debt $3,347 $3,269 $3,264 Fair value of long-term debt 3,480 3,430 2,804 Non-financial Assets Measured at Fair Value on a Nonrecurring Basis We also measure certain non-financial assets at fair value on a nonrecurring basis, primarily goodwill, long-lived tangible and ROU assets, in connection with periodic evaluations for potential impairment. We estimate the fair value of these assets using primarily unobservable inputs and, as such, these are considered Level 3 fair value measurements. There were no material impairment charges for these assets for the quarter ended May 1, 2021. For more information regarding long-lived tangible and ROU asset impairment charges for the quarter ended May 2, 2020, see Note 1: Basis of Presentation. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 01, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | NOTE 5: COMMITMENTS AND CONTINGENCIES Our NYC flagship store opened in October 2019 and the related building and equipment assets were placed into service at the end of the third quarter of 2019. While our store has opened, construction continues in the residential condominium units above the store. As of May 1, 2021, we have a fee interest in the retail condominium unit. We are committed to make one remaining installment payment based on the developer meeting final pre-established construction and development milestones. Precautions related to COVID-19 have caused delays in meeting these milestones and the timing of the remaining payment. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
May 01, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | NOTE 6: SHAREHOLDERS’ EQUITY In August 2018, our Board of Directors authorized a program to repurchase up to $1,500 of our outstanding common stock, with no expiration date. On March 23, 2020, in response to uncertainty from the COVID-19 pandemic, we announced the suspension of our quarterly dividend payments beginning in the second quarter of 2020 and the immediate suspension of our share repurchase program. We remain committed to these programs over the long-term and intend to resume dividend payments and share repurchases when appropriate. We had $707 remaining in share repurchase capacity as of May 1, 2021. The actual timing, price, manner and amounts of future share repurchases, if any, will be subject to the discretion of the Board of Directors, contractual commitments, market and economic conditions, and applicable SEC rules. Our Revolver contains negative covenants with respect to the payment of dividends and share repurchases. As of May 1, 2021, our Leverage Ratio exceeded four and we did not meet our credit rating covenant, preventing us from paying dividends or repurchasing shares. For more information regarding |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
May 01, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | NOTE 7: STOCK-BASED COMPENSATION The following table summarizes our stock-based compensation expense: Quarter Ended May 1, 2021 May 2, 2020 RSUs $14 $13 Stock options 7 2 Other 1 1 (2) Total stock-based compensation expense, before income tax benefit 22 13 Income tax benefit (6) (5) Total stock-based compensation expense, net of income tax benefit $16 $8 1 Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards. The following table summarizes our grant allocations: Quarter Ended May 1, 2021 May 2, 2020 Granted Weighted-average grant-date fair value per unit Granted Weighted-average grant-date fair value per unit RSUs 1.4 $33 2.2 $23 Stock options 1.2 $13 0.3 $7 PSUs — — 0.4 $24 Under our deferred and stock-based compensation plan arrangements, we issued 1.1 shares of common stock during the first quarter of 2021 and 1.5 shares during the first quarter of 2020. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 01, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 8: EARNINGS PER SHARE The computation of EPS is as follows: Quarter Ended May 1, 2021 May 2, 2020 Net loss ($166) ($521) Basic shares 158.5 156.4 Dilutive effect of common stock equivalents — — Diluted shares 158.5 156.4 Loss per basic share ($1.05) ($3.33) Loss per diluted share ($1.05) ($3.33) Anti-dilutive common stock equivalents 12.7 13.1 |
Segment Reporting
Segment Reporting | 3 Months Ended |
May 01, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 9: SEGMENT REPORTING The following table sets forth information for our reportable segment: Quarter Ended May 1, 2021 May 2, 2020 Retail segment EBIT ($55) ($711) Corporate/Other EBIT (30) (102) Interest expense, net (137) (34) Loss before income taxes ($222) ($847) For information about disaggregated revenues, see Note 2: Revenue. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
May 01, 2021 | |
Basis of Presentation [Abstract] | |
Reclassification | Reclassification We reclassified our fiscal 2020 Condensed Consolidated Statement of Cash Flows to conform with current period presentation. To adjust our net loss to reconcile to operating activity cash flows, we present depreciation and amortization separate from other, net, which includes the “ make-whole ” premium in the first quarter of 2021 (see Note 3: Debt and Credit Facilities). |
Recent Accounting Pronouncements | Recent Accounting PronouncementsIn November 2020, the SEC adopted the final rule under SEC Release No. 33-10890, Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information, which eliminates the requirement for selected financial data, streamlines certain disclosures in MD&A and eliminates duplicative disclosures with the intention of simplifying reporting compliance. In the fourth quarter of 2020, we early adopted the amendments to provision 301, Selected financial data and provision 302, Supplementary financial information. In the first quarter of 2021, we adopted all remaining provisions of this final rule. The adoption of this final rule did not have a material effect on our Consolidated Financial Statements |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
May 01, 2021 | |
Basis of Presentation [Abstract] | |
COVID-19 Related Asset Impairment Charges | The following table provides details related to asset impairment charges as a result of COVID-19: Quarter Ended May 2, 2020 Long-lived asset impairment 1 $94 Operating lease ROU asset impairment 1 23 Total asset impairment $117 1 As of May 2, 2020, the carrying value of the applicable long-lived and operating lease ROU assets after impairment was $15 and $6. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
May 01, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary Of Contract Liabilities | Our contract liabilities are classified as current on the Condensed Consolidated Balance Sheets and are as follows: Contract Liabilities Balance as of February 1, 2020 $576 Balance as of May 2, 2020 489 Balance as of January 30, 2021 478 Balance as of May 1, 2021 436 |
Disaggregated Net Sales | The following table summarizes our disaggregated net sales: Quarter Ended May 1, 2021 May 2, 2020 Nordstrom $1,854 $1,357 Nordstrom Rack 1,067 669 Total net sales $2,921 $2,026 Digital sales as a % of total net sales 46 % 54 % |
Percent Of Net Sales By Merchandise Category Summary | The following table summarizes the percent of net sales by merchandise category: Quarter Ended May 1, 2021 May 2, 2020 Women’s Apparel 31 % 33 % Shoes 26 % 24 % Women’s Accessories 14 % 12 % Men’s Apparel 12 % 12 % Beauty 11 % 12 % Kids’ Apparel 4 % 4 % Other 2 % 3 % Total net sales 100 % 100 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
May 01, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt | The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities: May 1, 2021 January 30, 2021 May 2, 2020 Carrying value of long-term debt $3,347 $3,269 $3,264 Fair value of long-term debt 3,480 3,430 2,804 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
May 01, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Summary Of Stock-Based Compensation Expense | The following table summarizes our stock-based compensation expense: Quarter Ended May 1, 2021 May 2, 2020 RSUs $14 $13 Stock options 7 2 Other 1 1 (2) Total stock-based compensation expense, before income tax benefit 22 13 Income tax benefit (6) (5) Total stock-based compensation expense, net of income tax benefit $16 $8 1 Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards. |
Summary Of Grants | The following table summarizes our grant allocations: Quarter Ended May 1, 2021 May 2, 2020 Granted Weighted-average grant-date fair value per unit Granted Weighted-average grant-date fair value per unit RSUs 1.4 $33 2.2 $23 Stock options 1.2 $13 0.3 $7 PSUs — — 0.4 $24 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 01, 2021 | |
Earnings Per Share [Abstract] | |
Computation Of Earnings Per Share | The computation of EPS is as follows: Quarter Ended May 1, 2021 May 2, 2020 Net loss ($166) ($521) Basic shares 158.5 156.4 Dilutive effect of common stock equivalents — — Diluted shares 158.5 156.4 Loss per basic share ($1.05) ($3.33) Loss per diluted share ($1.05) ($3.33) Anti-dilutive common stock equivalents 12.7 13.1 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
May 01, 2021 | |
Segment Reporting [Abstract] | |
Information By Reportable Segment | The following table sets forth information for our reportable segment: Quarter Ended May 1, 2021 May 2, 2020 Retail segment EBIT ($55) ($711) Corporate/Other EBIT (30) (102) Interest expense, net (137) (34) Loss before income taxes ($222) ($847) |
Basis of Presentation (COVID-19
Basis of Presentation (COVID-19 Related Asset Impairment Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 01, 2021 | May 02, 2020 | ||
Property, Plant and Equipment [Line Items] | |||
Long-lived asset impairment | [1] | $ 94 | |
Operating lease ROU asset impairment | [1] | 23 | |
Total asset impairment | $ 0 | 117 | |
Applicable long-lived assets [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Carrying value of applicable assets after impairment | 15 | ||
Applicable operating lease ROU assets [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Carrying value of applicable assets after impairment | $ 6 | ||
[1] | As of May 2, 2020, the carrying value of the applicable long-lived and operating lease ROU assets after impairment was $15 and $6. |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) $ in Millions | 3 Months Ended | |
May 01, 2021USD ($)store | May 02, 2020USD ($) | |
Basis Of Presentation [Line Items] | ||
Non-cash investing activities related to technology expenditures and accounts payable | $ 44 | |
Restructuring costs | $ 88 | |
Operating lease liabilities arising from the commencement of lease agreements | 33 | 37 |
Cost Of Sales And Related Buying And Occupancy Costs [Member] | ||
Basis Of Presentation [Line Items] | ||
Restructuring costs | 25 | |
Selling, General and Administrative Expenses [Member] | ||
Basis Of Presentation [Line Items] | ||
Restructuring costs | 63 | |
Prepaid Expenses and Other [Member] | ||
Basis Of Presentation [Line Items] | ||
Income taxes receivable | 576 | 275 |
Other Assets [Member] | ||
Basis Of Presentation [Line Items] | ||
Income taxes receivable | $ 60 | $ 2 |
Nordstrom US [Member] | ||
Basis Of Presentation [Line Items] | ||
Number of stores | store | 16 |
Revenue (Summary Of Contract Li
Revenue (Summary Of Contract Liabilities) (Details) - USD ($) $ in Millions | May 01, 2021 | Jan. 30, 2021 | May 02, 2020 | Feb. 01, 2020 |
Revenue from Contract with Customer [Abstract] | ||||
Contract liabilities | $ 436 | $ 478 | $ 489 | $ 576 |
Revenue (Disaggregated Net Sale
Revenue (Disaggregated Net Sales) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 2,921 | $ 2,026 |
Disaggregated sales by category | 100.00% | 100.00% |
Digital Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated sales by category | 46.00% | 54.00% |
Nordstrom [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,854 | $ 1,357 |
Nordstrom Rack [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,067 | $ 669 |
Revenue (Percent Of Net Sales B
Revenue (Percent Of Net Sales By Merchandise Category Summary) (Details) | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregated sales by category | 100.00% | 100.00% |
Women's Apparel [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated sales by category | 31.00% | 33.00% |
Shoes [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated sales by category | 26.00% | 24.00% |
Women's Accessories [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated sales by category | 14.00% | 12.00% |
Men's Apparel [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated sales by category | 12.00% | 12.00% |
Beauty [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated sales by category | 11.00% | 12.00% |
Kids' Apparel [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated sales by category | 4.00% | 4.00% |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated sales by category | 2.00% | 3.00% |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized from beginning contract liability balance | $ 114 | $ 130 |
Debt And Credit Facilities (Nar
Debt And Credit Facilities (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jun. 04, 2021USD ($) | May 01, 2021USD ($) | May 02, 2020USD ($) | Jan. 30, 2021USD ($) | |
Debt Instrument [Line Items] | ||||
Proceeds from long-term borrowings | $ 675 | $ 600 | ||
Principal payments on long-term borrowings | 600 | 0 | ||
Interest expense | 137 | 34 | ||
Proceeds from revolving line of credit | $ 200 | 800 | ||
Minimum leverage ratio for debt covenant to pay dividends or repurchase shares | 3.75 | |||
Minimum liquidity for debt covenant amendment to pay dividends or repurchase shares | $ 600 | |||
Borrowings under revolving line of credit | $ 200 | $ 800 | $ 0 | |
Number of options to extend revolver | 2 | |||
Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Payments on revolving line of credit | $ 200 | |||
Commercial paper [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 800 | |||
Borrowings not available at this time | 0 | |||
Issuances or borrowings | 0 | |||
Senior notes, 2.3%, due April 2024, net of unamortized discount | ||||
Debt Instrument [Line Items] | ||||
Proceeds from long-term borrowings | $ 250 | |||
Debt instrument interest rate | 2.30% | |||
Senior notes, 4.25%, due August 2031, net of unamortized discount | ||||
Debt Instrument [Line Items] | ||||
Proceeds from long-term borrowings | $ 425 | |||
Debt instrument interest rate | 4.25% | |||
Senior Secured Notes 8.750% due May 2025, net of unamortized discount [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal payments on long-term borrowings | $ 600 | |||
2021 Refinancing | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 88 | |||
One-time "make-whole" payment | 78 | |||
Revolver [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from revolving line of credit | $ 200 | |||
Debt covenant leverage ratio | 4 | |||
Option to increase the maximum capacity of revolving credit facility | $ 200 | |||
Maximum borrowing capacity | $ 1,000 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt) (Details) - USD ($) $ in Millions | May 01, 2021 | Jan. 30, 2021 | May 02, 2020 |
Fair Value Measurements, Long-term Debt [Line Items] | |||
Carrying value of long-term debt | $ 3,347 | $ 3,269 | $ 3,264 |
Level 2 [Member] | |||
Fair Value Measurements, Long-term Debt [Line Items] | |||
Fair value of long-term debt | $ 3,480 | $ 3,430 | $ 2,804 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Fair Value Disclosures [Abstract] | ||
Impairment charges | $ 0 | $ 117 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) | May 01, 2021 |
Commitments and Contingencies Disclosure [Abstract] | |
Installment payments remaining | 1 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) $ in Millions | 3 Months Ended |
May 01, 2021USD ($) | |
Retained Earnings Adjustments [Line Items] | |
Remaining share repurchase capacity | $ 707 |
Revolver [Member] | |
Retained Earnings Adjustments [Line Items] | |
Debt covenant leverage ratio | 4 |
2018 Program [Member] | |
Retained Earnings Adjustments [Line Items] | |
Share repurchase authorization | $ 1,500 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 01, 2021 | May 02, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $ 22 | $ 13 | |
Income tax benefit | (6) | (5) | |
Total stock-based compensation expense, net of income tax benefit | 16 | 8 | |
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | 14 | 13 | |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | 7 | 2 | |
Other [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | [1] | $ 1 | $ (2) |
[1] | Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards. |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Grants) (Details) - $ / shares shares in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted (in shares) | 1.2 | 0.3 |
Weighted-average grant-date fair value per stock option (in dollars per share) | $ 13 | $ 7 |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted (in shares) | 1.4 | 2.2 |
Weighted-average grant-date fair value per unit (in dollars per share) | $ 33 | $ 23 |
PSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted (in shares) | 0 | 0.4 |
Weighted-average grant-date fair value per unit (in dollars per share) | $ 0 | $ 24 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Issuance of common stock under stock compensation plans (in shares) | 1.1 | 1.5 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (166) | $ (521) |
Basic shares (in shares) | 158.5 | 156.4 |
Dilutive effect of common stock equivalents (in shares) | 0 | 0 |
Diluted shares (in shares) | 158.5 | 156.4 |
Loss per basic share (in dollars per share) | $ (1.05) | $ (3.33) |
Loss per diluted share (in dollars per share) | $ (1.05) | $ (3.33) |
Anti-dilutive common stock equivalents (in shares) | 12.7 | 13.1 |
Segment Reporting (Information
Segment Reporting (Information By Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 01, 2021 | May 02, 2020 | |
Segment Reporting Information [Line Items] | ||
Loss before interest and income taxes | $ (85) | $ (813) |
Interest expense, net | (137) | (34) |
Loss before income taxes | (222) | (847) |
Retail [Member] | ||
Segment Reporting Information [Line Items] | ||
Loss before interest and income taxes | (55) | (711) |
Corporate/Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Loss before interest and income taxes | $ (30) | $ (102) |