Nordstrom (JWN) 10-Q 2 Sep 22 2022 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jul. 30, 2022	Aug. 26, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 30, 2022
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		159,131,955
Entity Central Index Key	0000072333
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--01-28

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Income Statement [Abstract]
Net sales	$ 3,991	$ 3,565	$ 7,458	$ 6,486
Credit card revenues, net	104	92	207	180
Total revenues	4,095	3,657	7,665	6,666
Cost of sales and related buying and occupancy costs	(2,586)	(2,332)	(4,917)	(4,351)
Selling, general and administrative expenses	(1,307)	(1,174)	(2,473)	(2,249)
Earnings before interest and income taxes	202	151	275	66
Interest expense, net	(34)	(40)	(69)	(177)
Earnings (loss) before income taxes	168	111	206	(111)
Income tax (expense) benefit	(42)	(31)	(60)	25
Net earnings (loss)	$ 126	$ 80	$ 146	$ (86)
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.78	$ 0.50	$ 0.91	$ (0.54)
Diluted (in dollars per share)	$ 0.77	$ 0.49	$ 0.90	$ (0.54)
Weighted-average shares outstanding:
Basic (in shares)	160.6	159	160.3	158.7
Diluted (in shares)	162.9	162.8	162.9	158.7

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net earnings (loss)	$ 126	$ 80	$ 146	$ (86)
Foreign currency translation adjustment	0	(3)	(1)	7
Post retirement plan adjustments, net of tax	0	1	1	2
Comprehensive net earnings (loss)	$ 126	$ 78	$ 146	$ (77)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jul. 30, 2022	Jan. 29, 2022	Jul. 31, 2021
Assets
Cash and cash equivalents	$ 494	$ 322	$ 487
Accounts receivable, net	300	255	317
Merchandise inventories	2,399	2,289	2,182
Prepaid expenses and other	408	306	475
Total current assets	3,601	3,172	3,461
Land, property and equipment (net of accumulated depreciation of $7,943, $7,737 and $7,471)	3,443	3,562	3,573
Operating lease right-of-use assets	1,466	1,496	1,532
Goodwill	249	249	249
Other assets	403	390	415
Total assets	9,162	8,869	9,230
Liabilities and Shareholders’ Equity
Accounts payable	1,747	1,529	1,961
Accrued salaries, wages and related benefits	302	383	487
Current portion of operating lease liabilities	253	242	238
Other current liabilities	1,254	1,160	1,170
Total current liabilities	3,556	3,314	3,856
Long-term debt, net	2,853	2,853	2,849
Non-current operating lease liabilities	1,526	1,556	1,619
Other liabilities	564	565	638
Commitments and contingencies (Note 7)
Shareholders’ equity:
Common stock, no par value: 1,000 shares authorized; 159.8, 159.4 and 158.9 shares issued and outstanding	3,314	3,283	3,245
Accumulated deficit	(2,601)	(2,652)	(2,916)
Accumulated other comprehensive loss	(50)	(50)	(61)
Total shareholders’ equity	663	581	268
Total liabilities and shareholders’ equity	$ 9,162	$ 8,869	$ 9,230

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Jul. 30, 2022	Jan. 29, 2022	Jul. 31, 2021
Assets
Accumulated depreciation	$ 7,943	$ 7,737	$ 7,471
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	159.8	159.4	158.9
Common stock, shares outstanding	159.8	159.4	158.9

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 Jan. 30, 2021		$ 3,205
Common stock
Issuance of common stock under stock compensation plans		7
Stock-based compensation		33
Common stock, balance, end of period at Jul. 31, 2021	$ 3,245	3,245
Accumulated deficit, balance, beginning of period at Jan. 30, 2021			$ (2,830)
Accumulated deficit
Net earnings (loss)	(86)		(86)
Dividends			0
Repurchase of common stock	0		0
Accumulated deficit, balance, end of period at Jul. 31, 2021	(2,916)		(2,916)
Accumulated other comprehensive loss, balance, beginning of period at Jan. 30, 2021				$ (70)
Accumulated other comprehensive loss
Other comprehensive (loss) income				9
Accumulated other comprehensive loss, balance, end of period at Jul. 31, 2021	(61)			(61)
Total shareholders’ equity at Jul. 31, 2021	$ 268
Accumulated other comprehensive loss
Dividends per share	$ 0
Common stock, balance, beginning of period at May. 01, 2021		3,221
Common stock
Issuance of common stock under stock compensation plans		0
Stock-based compensation		24
Common stock, balance, end of period at Jul. 31, 2021	$ 3,245	3,245
Accumulated deficit, balance, beginning of period at May. 01, 2021			(2,996)
Accumulated deficit
Net earnings (loss)	80		80
Dividends			0
Repurchase of common stock			0
Accumulated deficit, balance, end of period at Jul. 31, 2021	(2,916)		(2,916)
Accumulated other comprehensive loss, balance, beginning of period at May. 01, 2021				(59)
Accumulated other comprehensive loss
Other comprehensive (loss) income				(2)
Accumulated other comprehensive loss, balance, end of period at Jul. 31, 2021	(61)			(61)
Total shareholders’ equity at Jul. 31, 2021	$ 268
Accumulated other comprehensive loss
Dividends per share	$ 0
Common stock, balance, beginning of period at Jan. 29, 2022	$ 3,283	3,283
Common stock
Issuance of common stock under stock compensation plans		9
Stock-based compensation		22
Common stock, balance, end of period at Jul. 30, 2022	3,314	3,314
Accumulated deficit, balance, beginning of period at Jan. 29, 2022	(2,652)		(2,652)
Accumulated deficit
Net earnings (loss)	146		146
Dividends			(60)
Repurchase of common stock	(35)		(35)
Accumulated deficit, balance, end of period at Jul. 30, 2022	(2,601)		(2,601)
Accumulated other comprehensive loss, balance, beginning of period at Jan. 29, 2022	(50)			(50)
Accumulated other comprehensive loss
Other comprehensive (loss) income				0
Accumulated other comprehensive loss, balance, end of period at Jul. 30, 2022	(50)			(50)
Total shareholders’ equity at Jul. 30, 2022	$ 663
Accumulated other comprehensive loss
Dividends per share	$ 0.38
Common stock, balance, beginning of period at Apr. 30, 2022		3,301
Common stock
Issuance of common stock under stock compensation plans		1
Stock-based compensation		12
Common stock, balance, end of period at Jul. 30, 2022	$ 3,314	$ 3,314
Accumulated deficit, balance, beginning of period at Apr. 30, 2022			(2,662)
Accumulated deficit
Net earnings (loss)	126		126
Dividends			(30)
Repurchase of common stock			(35)
Accumulated deficit, balance, end of period at Jul. 30, 2022	(2,601)		$ (2,601)
Accumulated other comprehensive loss, balance, beginning of period at Apr. 30, 2022				(50)
Accumulated other comprehensive loss
Other comprehensive (loss) income				0
Accumulated other comprehensive loss, balance, end of period at Jul. 30, 2022	(50)			$ (50)
Total shareholders’ equity at Jul. 30, 2022	$ 663
Accumulated other comprehensive loss
Dividends per share	$ 0.19

Condensed Consolidated Statem_4

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021
Operating Activities
Net earnings (loss)	$ 146	$ (86)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization expenses	301	321
Right-of-use asset amortization	93	90
Deferred income taxes, net	(31)	17
Stock-based compensation expense	39	45
Other, net	(41)	80
Change in operating assets and liabilities:
Accounts receivable	(17)	(72)
Merchandise inventories	(38)	(189)
Prepaid expenses and other assets	(99)	314
Accounts payable	133	(88)
Accrued salaries, wages and related benefits	(82)	137
Other current liabilities	97	123
Lease liabilities	(133)	(156)
Other liabilities	5	9
Net cash provided by operating activities	373	545
Investing Activities
Capital expenditures	(215)	(217)
Proceeds from the sale of assets and other, net	82	(13)
Net cash used in investing activities	(133)	(230)
Financing Activities
Proceeds from revolving line of credit	0	200
Payments on revolving line of credit	0	(200)
Proceeds from long-term borrowings	0	675
Principal payments on long-term borrowings	0	(1,100)
Increase in cash book overdrafts	36	6
Cash dividends paid	(60)	0
Payments for repurchase of common stock	(35)	0
Proceeds from issuances under stock compensation plans	9	7
Tax withholding on share-based awards	(14)	(13)
Make-whole premium payment and other, net	(4)	(86)
Net cash used in financing activities	(68)	(511)
Effect of exchange rate changes on cash and cash equivalents	0	2
Net increase (decrease) in cash and cash equivalents	172	(194)
Cash and cash equivalents at beginning of period	322	681
Cash and cash equivalents at end of period	494	487
Cash paid (received) during the period for:
Income taxes, net	91	(486)
Interest, net of capitalized interest	$ 69	$ 99

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 30, 2022
Basis of Presentation [Abstract]
Basis Of Presentation	NOTE 1: BASIS OF PRESENTATION The 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 2021 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 July 30, 2022 and July 31, 2021 are unaudited. The Condensed Consolidated Balance Sheet as of January 29, 2022 has been derived from the audited Consolidated Financial Statements included in our 2021 Annual Report . The interim Condensed Consolidated Financial Statements should be read together with the Consolidated Financial Statements and related footnote disclosures contained in our 2021 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 most of our Anniversary Sale, and in the fourth quarter due to the holidays. Approximately one week of our Anniversary Sale shifted from the third quarter in 2021 to the second quarter in 2022. Results for any one quarter are not indicative of the results that may be achieved for a full fiscal year. We plan our merchandise purchases and receipts to coincide with expected sales trends. For instance, our merchandise purchases and receipts increase prior to the Anniversary Sale and in the fall as we prepare for the holiday shopping season in 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 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 impact of COVID-19 and changes in economic conditions going forward and as a result our estimates may change in the near term. Leases We incurred operating lease liabilities arising from lease agreements of $113 for the six months ended July 30, 2022 and $66 for the six months ended July 31, 2021. Trunk Club Wind-down During the first quarter of 2022, in conjunction with the decision to sunset the Trunk Club brand, we incurred non-cash impairment charges of $10 related to a Trunk Club property to adjust the carrying values to their estimated fair value. These charges are included in our Retail segment SG&A expense on the Condensed Consolidated Statement of Earnings. During the second quarter of 2022, we incurred additional costs of $8 associated with the wind-down of Trunk Club. These costs are primarily included in our Retail segment cost of sales and related buying and occupancy costs expense on the Condensed Consolidated Statement of Earnings. All charges are classified as operating on the Condensed Consolidated Statement of Cash Flows. Investments In July 2021, we acquired a minority interest in the Topshop, Topman, Miss Selfridge and HIIT brands through a strategic partnership with ASOS.com Ltd. From time to time, we invest in financial interests of private companies that align with our business and omni-channel strategies, which are recorded in other assets in the Condensed Consolidated Balance Sheets and proceeds from the sale of assets and other, net on the Condensed Consolidated Statements of Cash Flows. During the first quarter of 2022, in connection with the sale of a limited partnership interest in a corporate office building, we recognized a gain of $51 in our Corporate/Other SG&A expense in the Condensed Consolidated Statement of Earnings and $73 in proceeds from the sale of assets and other, net on the Condensed Consolidated Statement of Cash Flows.

Revenue

Revenue	6 Months Ended
	Jul. 30, 2022
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 January 30, 2021 $478 Balance as of May 1, 2021 436 Balance as of July 31, 2021 433 Balance as of January 29, 2022 478 Balance as of April 30, 2022 442 Balance as of July 30, 2022 438 Revenues recognized from our beginning contract liability balance were $119 and $197 the quarter and six months ended July 30, 2022 and $106 and $176 for the quarter and six months ended July 31, 2021. Disaggregation of Revenue The following table summarizes our disaggregated net sales: Quarter Ended Six Months Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Nordstrom $2,771 $2,417 $5,060 $4,270 Nordstrom Rack 1,220 1,148 2,398 2,216 Total net sales $3,991 $3,565 $7,458 $6,486 Digital sales as a % of total net sales 38 % 40 % 38 % 42 % The following table summarizes the percent of net sales by merchandise category: Quarter Ended Six Months Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Women’s Apparel 29 % 30 % 29 % 30 % Shoes 25 % 24 % 25 % 25 % Men’s Apparel 15 % 14 % 15 % 13 % Women’s Accessories 13 % 14 % 13 % 14 % Beauty 11 % 11 % 11 % 11 % Kids’ Apparel 4 % 4 % 4 % 4 % Other 3 % 3 % 3 % 3 % Total net sales 100 % 100 % 100 % 100 %

Debt And Credit Facilities

Debt And Credit Facilities	6 Months Ended
	Jul. 30, 2022
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 2.30% senior notes due April 2024 and $425 aggregate principal amount of 4.25% senior notes due August 2031. 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” premium payment was not included in cash paid during the period for interest, net of capitalized interest in the Supplemental Cash Flow Information. During the second quarter of 2021, we retired our 4.00% senior notes that were due October 2021 using cash on hand. Credit Facilities During the second quarter of 2022, we terminated and replaced our prior revolving credit facility set to expire in September 2023 with a new $800 Revolver that expires in May 2027. Consistent with our prior revolving credit agreement, any outstanding borrowings under the Revolver are secured by substantially all our personal and intellectual property assets and are guaranteed by certain of our subsidiaries. Under the Revolver, our obligation to secure any outstanding borrowings will be eliminated if no default exists and we either have an unsecured investment-grade debt rating from two of three specified ratings agencies, or we have one investment-grade rating and achieve two consecutive fiscal quarters with a Leverage Ratio of less than 2.5 times. Under the Revolver, we have two financial covenant tests that need to be met on a quarterly basis: a Leverage Ratio that is less than or equal to 4 times and a fixed charge coverage ratio that is greater than or equal to 1.25 times. As of July 30, 2022, we were in compliance with all covenants. The Revolver provides us with additional flexibility, compared with our prior revolving credit facility, for dividends and share repurchases, provided we are not in default, and no default would arise as a result of such payments. If the pro-forma Leverage Ratio after such payments is less than 3 times, then such payments are unlimited. If the pro-forma Leverage Ratio is greater than or equal to 3 times but less than 3.5 times then we are limited to $100 per fiscal quarter and if the pro-forma Leverage Ratio is greater than or equal to 3.5 times then the limit is $60 per fiscal quarter. The Revolver contains customary representations, warranties, covenants and terms, including paying a variable rate of interest and a facility fee based on our debt rating, and is available for working capital, capital expenditures and general corporate purposes. 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 for additional one-year terms. As of July 30, 2022, we had no borrowings outstanding under our Revolver. Our $800 commercial paper 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. Conversely, borrowings under our Revolver have the effect of reducing the available capacity of our commercial paper program by an amount equal to the amount outstanding. As of July 30, 2022, we had no issuances outstanding under our commercial paper program.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 30, 2022
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: July 30, 2022 January 29, 2022 July 31, 2021 Carrying value of long-term debt $2,853 $2,853 $2,849 Fair value of long-term debt 2,433 2,758 3,051 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. For more information regarding long-lived tangible asset impairment charges for the six months ended July 30, 2022, see Note 1: Basis of Presentation. There were no material impairment charges for these assets for the six months ended July 31, 2021.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jul. 30, 2022
Share-based Payment Arrangement, Noncash Expense [Abstract]
Stock-Based Compensation	NOTE 5: STOCK-BASED COMPENSATION The following table summarizes our stock-based compensation expense: Quarter Ended Six Months Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 RSUs $11 $14 $23 $28 Stock options 6 8 11 15 Other 1 3 1 5 2 Total stock-based compensation expense, before income tax benefit 20 23 39 45 Income tax benefit (5) (6) (10) (12) Total stock-based compensation expense, net of income tax benefit $15 $17 $29 $33 1 Other stock-based compensation expense includes nonemployee director stock awards, PSUs and ESPP awards. The following table summarizes our grant allocations: Six Months Ended July 30, 2022 July 31, 2021 Granted Weighted-average grant-date fair value per unit Granted Weighted-average grant-date fair value per unit RSUs 2.3 $23 1.4 $33 Stock options 1.1 $10 1.2 $13 PSUs 0.5 $23 — $— Under our deferred and stock-based compensation plan arrangements, we issued 0.8 and 1.9 shares of common stock during the quarter and six months ended July 30, 2022 and 0.1 and 1.2 shares during the quarter and six months ended July 31, 2021.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jul. 30, 2022
Stockholders' Equity Note [Abstract]
Shareholders' Equity	NOTE 6: SHAREHOLDERS’ EQUITY In May 2022, our Board of Directors authorized a program to repurchase up to $500 of our outstanding common stock, with no expiration date. This new program replaced the August 2018 program, which had no expiration date and $707 remaining in repurchase capacity at termination. Our share repurchases are summarized as follows: Six Months Ended July 30, 2022 July 31, 2021 Shares of common stock repurchased 1.5 — Average price paid per share $23.17 — Aggregate amount of common stock repurchased $35 — We had $465 remaining in share repurchase capacity as of July 30, 2022. In August 2022, subsequent to quarter end, we declared a quarterly dividend of $0.19 per share, which will be paid on September 14, 2022 to shareholders of record at the close of business on August 30, 2022. We have certain limitations with respect to the payment of dividends and share repurchases under our Revolver agreement (see Note 3: Debt and Credit Facilities).

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	NOTE 7: 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 July 30, 2022, we have a fee interest in the retail condominium unit. In the third quarter of 2021, we paid the majority of our final installment payment based on the developer meeting final pre-established construction and development milestones.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jul. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Share	NOTE 8: EARNINGS PER SHARE The computation of EPS is as follows: Quarter Ended Six Months Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Net earnings (loss) $126 $80 $146 ($86) Basic shares 160.6 159.0 160.3 158.7 Dilutive effect of common stock equivalents 2.3 3.8 2.6 — Diluted shares 162.9 162.8 162.9 158.7 Earnings (loss) per basic share $0.78 $0.50 $0.91 ($0.54) Earnings (loss) per diluted share $0.77 $0.49 $0.90 ($0.54) Anti-dilutive common stock equivalents 8.9 7.5 9.5 12.0

Segment Reporting

Segment Reporting	6 Months Ended
	Jul. 30, 2022
Segment Reporting [Abstract]
Segment Reporting	NOTE 9: SEGMENT REPORTING The following table sets forth information for our reportable segment: Quarter Ended Six Months Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Retail segment EBIT $265 $193 $352 $138 Corporate/Other EBIT (63) (42) (77) (72) Interest expense, net (34) (40) (69) (177) Earnings (loss) before income taxes $168 $111 $206 ($111) For information about disaggregated revenues, see Note 2: Revenue.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jul. 30, 2022
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 January 30, 2021 $478 Balance as of May 1, 2021 436 Balance as of July 31, 2021 433 Balance as of January 29, 2022 478 Balance as of April 30, 2022 442 Balance as of July 30, 2022 438
Disaggregated Net Sales	The following table summarizes our disaggregated net sales: Quarter Ended Six Months Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Nordstrom $2,771 $2,417 $5,060 $4,270 Nordstrom Rack 1,220 1,148 2,398 2,216 Total net sales $3,991 $3,565 $7,458 $6,486 Digital sales as a % of total net sales 38 % 40 % 38 % 42 %
Percent Of Net Sales By Merchandise Category Summary	The following table summarizes the percent of net sales by merchandise category: Quarter Ended Six Months Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Women’s Apparel 29 % 30 % 29 % 30 % Shoes 25 % 24 % 25 % 25 % Men’s Apparel 15 % 14 % 15 % 13 % Women’s Accessories 13 % 14 % 13 % 14 % Beauty 11 % 11 % 11 % 11 % Kids’ Apparel 4 % 4 % 4 % 4 % Other 3 % 3 % 3 % 3 % Total net sales 100 % 100 % 100 % 100 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 30, 2022
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: July 30, 2022 January 29, 2022 July 31, 2021 Carrying value of long-term debt $2,853 $2,853 $2,849 Fair value of long-term debt 2,433 2,758 3,051

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jul. 30, 2022
Share-based Payment Arrangement, Noncash Expense [Abstract]
Summary Of Stock-Based Compensation Expense	The following table summarizes our stock-based compensation expense: Quarter Ended Six Months Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 RSUs $11 $14 $23 $28 Stock options 6 8 11 15 Other 1 3 1 5 2 Total stock-based compensation expense, before income tax benefit 20 23 39 45 Income tax benefit (5) (6) (10) (12) Total stock-based compensation expense, net of income tax benefit $15 $17 $29 $33 1 Other stock-based compensation expense includes nonemployee director stock awards, PSUs and ESPP awards.
Summary Of Grants	The following table summarizes our grant allocations: Six Months Ended July 30, 2022 July 31, 2021 Granted Weighted-average grant-date fair value per unit Granted Weighted-average grant-date fair value per unit RSUs 2.3 $23 1.4 $33 Stock options 1.1 $10 1.2 $13 PSUs 0.5 $23 — $—

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jul. 30, 2022
Stockholders' Equity Note [Abstract]
Summary Of Share Repurchase Program Activity	Our share repurchases are summarized as follows: Six Months Ended July 30, 2022 July 31, 2021 Shares of common stock repurchased 1.5 — Average price paid per share $23.17 — Aggregate amount of common stock repurchased $35 —

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jul. 30, 2022
Earnings Per Share [Abstract]
Computation of Earnings Per Share	The computation of EPS is as follows: Quarter Ended Six Months Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Net earnings (loss) $126 $80 $146 ($86) Basic shares 160.6 159.0 160.3 158.7 Dilutive effect of common stock equivalents 2.3 3.8 2.6 — Diluted shares 162.9 162.8 162.9 158.7 Earnings (loss) per basic share $0.78 $0.50 $0.91 ($0.54) Earnings (loss) per diluted share $0.77 $0.49 $0.90 ($0.54) Anti-dilutive common stock equivalents 8.9 7.5 9.5 12.0

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jul. 30, 2022
Segment Reporting [Abstract]
Information By Reportable Segment	The following table sets forth information for our reportable segment: Quarter Ended Six Months Ended July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021 Retail segment EBIT $265 $193 $352 $138 Corporate/Other EBIT (63) (42) (77) (72) Interest expense, net (34) (40) (69) (177) Earnings (loss) before income taxes $168 $111 $206 ($111)

Basis of Presentation (Narrativ

Basis of Presentation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 30, 2022	Jul. 30, 2022	Jul. 31, 2021
Basis of Presentation [Abstract]
Operating lease liabilities arising from lease agreements		$ 113	$ 66
Non-cash Trunk Club impairment charges		10
Other Trunk Club wind-down costs	$ 8
Gain on sale of a limited partnership interest		51
Proceeds from sale of a limited partnership interest		$ 73

Revenue (Summary Of Contract Li

Revenue (Summary Of Contract Liabilities) (Details) - USD ($) $ in Millions	Jul. 30, 2022	Apr. 30, 2022	Jan. 29, 2022	Jul. 31, 2021	May 01, 2021	Jan. 30, 2021
Revenue from Contract with Customer [Abstract]
Contract liabilities	$ 438	$ 442	$ 478	$ 433	$ 436	$ 478

Revenue (Disaggregated Net Sale

Revenue (Disaggregated Net Sales) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Disaggregation of Revenue [Line Items]
Total net sales	$ 3,991	$ 3,565	$ 7,458	$ 6,486
Disaggregated sales by category	100%	100%	100%	100%
Digital Sales [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	38%	40%	38%	42%
Nordstrom [Member]
Disaggregation of Revenue [Line Items]
Total net sales	$ 2,771	$ 2,417	$ 5,060	$ 4,270
Nordstrom Rack [Member]
Disaggregation of Revenue [Line Items]
Total net sales	$ 1,220	$ 1,148	$ 2,398	$ 2,216

Revenue (Percent Of Net Sales B

Revenue (Percent Of Net Sales By Merchandise Category Summary) (Details)	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	100%	100%	100%	100%
Women's Apparel [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	29%	30%	29%	30%
Shoes [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	25%	24%	25%	25%
Men's Apparel [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	15%	14%	15%	13%
Women's Accessories [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	13%	14%	13%	14%
Beauty [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	11%	11%	11%	11%
Kids' Apparel [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	4%	4%	4%	4%
Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	3%	3%	3%	3%

Revenue (Narrative) (Details)

Revenue (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Revenue from Contract with Customer [Abstract]
Revenue recognized from beginning contract liability balance	$ 119	$ 106	$ 197	$ 176

Debt And Credit Facilities (Nar

Debt And Credit Facilities (Narrative) (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022 USD ($) covenant numberOfRatingsAgencies numberOfPeriods	Jul. 31, 2021 USD ($)	Jul. 30, 2022 USD ($) covenant numberOfRatingsAgencies numberOfPeriods	Jul. 31, 2021 USD ($)	May 01, 2021
Debt Instrument [Line Items]
Proceeds from long-term borrowings			$ 0	$ 675
Principal payments on long-term borrowings			0	1,100
Interest expense, net	$ 34	$ 40	$ 69	177
Number of specified ratings agencies | numberOfRatingsAgencies	3		3
Number of financial covenant tests | covenant	2		2
Number of options to extend revolver	2		2
Commercial paper [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 800		$ 800
Issuances or borrowings	$ 0		$ 0
Minimum [Member]
Debt Instrument [Line Items]
Number of specified ratings agencies | numberOfRatingsAgencies	2		2
Middle range of Leverage Ratio limits on dividends and share repurchases [Member]
Debt Instrument [Line Items]
Limit on dividends and share repurchases	$ 100
Lower limit on dividends and share repurchases [Member]
Debt Instrument [Line Items]
Limit on dividends and share repurchases	$ 60
Senior notes, 2.30%, due April 2024 [Member]
Debt Instrument [Line Items]
Proceeds from long-term borrowings				250
Debt instrument interest rate	2.30%		2.30%
Senior notes, 4.25%, due August 2031 [Member]
Debt Instrument [Line Items]
Proceeds from long-term borrowings				425
Debt instrument interest rate	4.25%		4.25%
Secured Notes, 8.75%, due May 2025 [Member]
Debt Instrument [Line Items]
Principal payments on long-term borrowings				600
2021 Refinancing
Debt Instrument [Line Items]
Interest expense, net				88
One-time "make-whole" payment				$ 78
Senior notes, 4.00%, due October 2021 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate					4%
Revolver [Member]
Debt Instrument [Line Items]
Current borrowing capacity	$ 800		$ 800
Debt covenant leverage ratio	4		4
Fixed charge coverage ratio	1.25		1.25
Option to increase the maximum capacity of revolving credit facility	$ 200		$ 200
Maximum borrowing capacity	1,000		1,000
Issuances or borrowings	$ 0		$ 0
Revolver [Member] | Lower limit of agencies providing investment grade rating [Member] | Minimum [Member]
Debt Instrument [Line Items]
Number of specified ratings agencies | numberOfRatingsAgencies	1		1
Number of consecutive fiscal quarters meeting leverage ratio threshold | numberOfPeriods	2		2
Debt covenant leverage ratio	2.5		2.5
Revolver [Member] | Maximum leverage ratio for unlimited dividends and share repurchases [Member]
Debt Instrument [Line Items]
Debt covenant leverage ratio	3		3
Revolver [Member] | Upper limit of Leverage Ratio
Debt Instrument [Line Items]
Debt covenant leverage ratio	3.5		3.5

Fair Value Measurements (Summar

Fair Value Measurements (Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt) (Details) - USD ($) $ in Millions	Jul. 30, 2022	Jan. 29, 2022	Jul. 31, 2021
Fair Value Measurements, Long-term Debt [Line Items]
Carrying value of long-term debt	$ 2,853	$ 2,853	$ 2,849
Level 2 [Member]
Fair Value Measurements, Long-term Debt [Line Items]
Fair value of long-term debt	$ 2,433	$ 2,758	$ 3,051

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) $ in Millions	6 Months Ended
	Jul. 31, 2021 USD ($)
Fair Value Disclosures [Abstract]
Impairment charges	$ 0

Stock-Based Compensation (Summa

Stock-Based Compensation (Summary Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, before income tax benefit		$ 20	$ 23	$ 39	$ 45
Income tax benefit		(5)	(6)	(10)	(12)
Total stock-based compensation expense, net of income tax benefit		15	17	29	33
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, before income tax benefit		11	14	23	28
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, before income tax benefit		6	8	11	15
Other [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, before income tax benefit	[1]	$ 3	$ 1	$ 5	$ 2
[1]Other stock-based compensation expense includes nonemployee director stock awards, PSUs and ESPP awards.

Stock-Based Compensation (Sum_2

Stock-Based Compensation (Summary Of Grants) (Details) - $ / shares shares in Millions	6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (in shares)	2.3	1.4
Weighted-average grant-date fair value per unit (in dollars per share)	$ 23	$ 33
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	1.1	1.2
Weighted-average grant-date fair value per stock option (in dollars per share)	$ 10	$ 13
PSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (in shares)	0.5	0
Weighted-average grant-date fair value per unit (in dollars per share)	$ 23	$ 0

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Share-based Payment Arrangement [Abstract]
Issuance of common stock under stock compensation plans (in shares)	0.8	0.1	1.9	1.2

Shareholders' Equity (Summary O

Shareholders' Equity (Summary Of Share Repurchase Program Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021
Stockholders' Equity Note [Abstract]
Shares of common stock repurchased	1.5	0
Average price paid per share	$ 23.17	$ 0
Aggregate amount of common stock repurchased	$ 35	$ 0

Shareholders' Equity (Narrative

Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Sep. 02, 2022	Jul. 30, 2022
Subsequent Event [Member]
Shareholders' Equity [Line Items]
Quarterly dividend declared and paid in subsequent quarter	$ 0.19
2022 Program [Member]
Shareholders' Equity [Line Items]
Share repurchase authorization		$ 500
Remaining share repurchase capacity		465
2018 Program [Member]
Shareholders' Equity [Line Items]
Remaining share repurchase capacity		$ 707

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		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Earnings Per Share [Abstract]
Net earnings (loss)	$ 126	$ 80	$ 146	$ (86)
Basic shares (in shares)	160.6	159	160.3	158.7
Dilutive effect of common stock equivalents (in shares)	2.3	3.8	2.6	0
Diluted shares (in shares)	162.9	162.8	162.9	158.7
Earnings (loss) per basic share (in dollars per share)	$ 0.78	$ 0.50	$ 0.91	$ (0.54)
Earnings (loss) per diluted share (in dollars per share)	$ 0.77	$ 0.49	$ 0.90	$ (0.54)
Anti-dilutive common stock equivalents (in shares)	8.9	7.5	9.5	12

Segment Reporting (Information

Segment Reporting (Information By Reportable Segment) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2022	Jul. 31, 2021	Jul. 30, 2022	Jul. 31, 2021
Segment Reporting Information [Line Items]
Earnings (loss) before interest and income taxes	$ 202	$ 151	$ 275	$ 66
Interest expense, net	(34)	(40)	(69)	(177)
Earnings (loss) before income taxes	168	111	206	(111)
Retail Segment [Member]
Segment Reporting Information [Line Items]
Earnings (loss) before interest and income taxes	265	193	352	138
Corporate/Other [Member]
Segment Reporting Information [Line Items]
Earnings (loss) before interest and income taxes	$ (63)	$ (42)	$ (77)	$ (72)