<page> Exhibit 99.1
For Immediate Release
- ---------------------
November 17, 2005
NORDSTROM REPORTS THIRD QUARTER EARNINGS PER SHARE OF 39 CENTS
SEATTLE - November 17, 2005 - Nordstrom, Inc. (NYSE: JWN) today reported
net earnings of $107.5 million, or $0.39 per diluted share, for the third
quarter ended October 29, 2005. For the same period last year, net earnings
and earnings per diluted share were $77.8 million and $0.27, respectively.
Total sales for the third quarter of 2005 increased 8.0 percent, to $1.7
billion, compared to sales of $1.5 billion in the same period last year.
Third quarter same-store sales increased 5.9 percent.
THIRD QUARTER HIGHLIGHTS
Net earnings increased 38 percent in the third quarter compared to the same
quarter last year, reflecting strong sales momentum and ongoing operating
improvements. The company remains committed to providing a differentiated
shopping experience and delivering superior long-term financial performance.
- Same-store sales increased 5.9 percent for the quarter, higher than the
company's 3 to 5 percent same-store sales guidance.
- Gross profit, as a percent of sales, increased 34 basis points, primarily
as a result of sales leverage on buying and occupancy expenses.
- Disciplined expense management, combined with higher than plan sales,
resulted in a 130 basis point reduction in selling, general and administrative
expenses on a percent to sales basis.
- Income tax expense was reduced $6.3 million, or $0.02 per diluted share,
due to the final determination of the company's fiscal 2004 tax expense and
the completion of tax return audits for earlier years.
YEAR-TO-DATE RESULTS
Year-to-date net earnings increased 42 percent to $360.9 million for the
period ended October 29, 2005, compared to net earnings of $253.5 million for
the same period last year. Earnings per share for the same periods were $1.30
and $0.89, respectively.
Year-to-date total sales increased 7.9 percent to $5.4 billion compared to
prior year sales of $5.0 billion. Same-store sales increased 6.1 percent.
EXPANSION UPDATE
During the third quarter Nordstrom opened two full-line stores: one in San
Antonio, Texas at The Shops at La Cantera, and the other in Irvine, Calif. at
The Irvine Spectrum. The final new store planned for this year was opened
November 11th in Dallas, Texas at the NorthPark Center. Gross square footage
for the year has increased approximately 3.4 percent, from 19,397,000 to
20,058,000.
QUARTERLY DIVIDEND
The company's Board of Directors has approved a quarterly dividend of
$0.085 per share, payable on December 15, 2005, to shareholders of record on
November 30, 2005.
SHARE REPURCHASE
Nordstrom repurchased approximately 4,703,000 shares of common stock during
the third quarter for a total of $172.4 million. The resulting reduction in
weighted average shares outstanding increased diluted earnings per share
approximately $0.01 for the quarter.
<page>
2005 OUTLOOK
For the fiscal year ending January 28, 2006, the company is raising its
prior earnings per share outlook of $1.80-$1.90 to $1.90-$1.95. This would
represent a 38 to 41 percent increase over the prior year. For the fourth
quarter, the company expects low single digit same-store sales growth and
earnings per share in the range of $0.60 to $0.65.
CONFERENCE CALL INFORMATION:
Company management will be hosting a conference call and webcast to discuss
third quarter results at 4:15p.m.(ET) today. Access to the conference call is
open to the press and general public in a listen only mode. To participate,
please dial, 212-547-0138 ten minutes prior to the call (passcode: NORD). A
telephone replay will be available for 48 hours beginning approximately one
hour after the conclusion of the call by dialing 888-562-4353. Interested
parties may also access the call over the Internet by visiting the Investor
Relations section of the company's corporate website at
http://about.nordstrom.com/aboutus/investor/webcasts.asp. An archived version
of the webcast will be available at this location for 30 days.
Nordstrom, Inc. is one of the nation's leading fashion specialty retailers,
with 155 US stores located in 27 states. Founded in 1901 as a shoe store in
Seattle, today Nordstrom operates 98 full-line stores, 49 Nordstrom Racks, five
Faconnable boutiques, one free-standing shoe store, and two clearance stores.
Nordstrom also operates 32 international Faconnable boutiques in Europe.
Additionally, Nordstrom serves customers through its online presence at
http://www.nordstrom.com and through its catalogs. Nordstrom, Inc. is publicly
traded on the NYSE under the symbol JWN.
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 results,
store openings 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 impact of economic
and competitive market forces, including the impact of terrorist activity or
the impact of a war on the company, its customers and the retail industry, the
company's ability to predict fashion trends, consumer apparel buying patterns,
trends in personal bankruptcies and bad debt write-offs, changes in interest
rates, employee relations, the company's ability to continue its expansion
plans, changes in government or regulatory requirements, the company's ability
to control costs, weather conditions and hazards of nature. 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. The company undertakes no
obligation to update or revise any forward-looking statements to reflect
subsequent events, new information or future circumstances.
<page>
NORDSTROM, INC.
CONSOLIDATED STATEMENTS OF EARNINGS - 3rd Quarter
(unaudited; amounts in thousands, except per share data and percentages)
<table>
<caption>
Quarter % of sales(1) Quarter % of sales
ended (except as ended (except as
10/29/05 indicated) 10/30/04 indicated)
------ --------- ------ ---------
<s> <c> <c> <c> <c>
Net sales $1,666,130 100.0% $1,542,075 100.0%
Cost of sales and related buying
& occupancy costs (1,058,452) (63.5%) (984,908) (63.9%)
--------- ---------
Gross profit 607,678 36.5% 557,167 36.1%
Selling, general and administrative
expenses (481,768) (28.9%) (465,769) (30.2%)
-------- --------
Operating income 125,910 7.6% 91,398 5.9%
Interest expense, net (10,248) (0.6%) (13,485) (0.9%)
Other income including
finance charges, net 47,350 2.8% 45,000 2.9%
-------- --------
Earnings before income taxes 163,012 9.8% 122,913 8.0%
Income tax expense (55,559) (34.1%)(2) (45,085) (36.7%)(2)
-------- --------
Net earnings $107,453 6.4% $77,828 5.0%
======== ========
Earnings per share
Basic $ 0.40 $ 0.28
Diluted $ 0.39 $ 0.27
</table>
ADDITIONAL DATA
- ---------------
Weighted average shares outstanding
<table>
<caption>
<s> <c> <c>
Basic 271,599 281,395
Diluted 277,293 286,298
</table>
(1)Totals and subtotals may not foot due to rounding.
(2)Percent of earnings before income taxes.
<page>
NORDSTROM, INC.
CONSOLIDATED STATEMENTS OF EARNINGS - Year-to-Date
(unaudited; amounts in thousands, except per share data and percentages)
<table>
<caption>
Year-to-Date % of sales(1) Year-to-Date % of sales
ended (except as ended (except as
10/29/05 indicated) 10/30/04 indicated)
------ --------- ------ ---------
<s> <c> <c> <c> <c>
Net sales $5,427,042 100.0% $5,031,045 100.0%
Cost of sales and related buying
& occupancy costs (3,452,132) (63.6%) (3,228,732) (64.2%)
--------- ---------
Gross profit 1,974,910 36.4% 1,802,313 35.8%
Selling, general and administrative
expenses (1,498,386) (27.6%) (1,454,736) (28.9%)
-------- --------
Operating income 476,524 8.8% 347,577 6.9%
Interest expense, net (33,791) (0.6%) (64,260) (1.3%)
Other income including
finance charges, net 135,052 2.5% 127,489 2.5%
-------- --------
Earnings before income taxes 577,785 10.6% 410,806 8.2%
Income tax expense (216,876) (37.5%)(2) (157,336) (38.3%)(2)
-------- --------
Net earnings $360,909 6.7% $253,470 5.0%
======== ========
Earnings per share
Basic $ 1.32 $ 0.90
Diluted $ 1.30 $ 0.89
</table>
ADDITIONAL DATA
- ---------------
Weighted average shares outstanding
<table>
<caption>
<s> <c> <c>
Basic 272,683 280,361
Diluted 278,399 285,736
</table>
Investor Contact: Media Contact:
Stephanie Allen, 206-303-3262 Deniz Anders, 206-373-3038
(1)Totals and subtotals may not foot due to rounding.
(2)Percent of earnings before income taxes.