Exhibit 13.1
1 NORDSTROM, INC. AND SUBSIDIARIES
Table of Contents
2 Financial Highlights
3 Message to our Shareholders
4 Management Discussion & Analysis
8 Consolidated Statements of Earnings
9 Consolidated Balance Sheets
10 Consolidated Statements of Shareholders' Equity
11 Consolidated Statements of Cash Flows
12 Notes to Consolidated Financial Statements
21 Report of Management
22 Independent Auditors' Report
23 Ten-Year Statistical Summary
25 Officers, Directors and Committees
29 Retail Store Facilities
About the Company
Nordstrom has grown from its origins as a small shoe store to become one of
the nation's leading fashion specialty retailers, offering a wide variety of
fine quality apparel, shoes and accessories for women, men and children. Now
in its 94th year, Nordstrom operates 55 large specialty stores in Washington,
Oregon, California, Utah, Alaska, Virginia, Maryland, New Jersey, Illinois and
Minnesota, plus one smaller specialty store, 19 clearance and off-price
stores, a men's wear boutique in New York City, and leased shoe departments in
12 department stores in Hawaii and Guam. Currently led by the third
generation of the Nordstrom family, the Company remains committed to its
founding principles of quality, value, selection and service.
NORDSTROM, INC. AND SUBSIDIARIES 2
Financial Highlights
Dollars in thousands except per share amounts
Fiscal Year 1994 1993 % Change
------------------------------------------------------------------------------
Net sales $3,894,478 $3,589,938 +8.5
Earnings before income taxes 335,558 230,918 +45.3
Net earnings 202,958 140,418 +44.5
Net earnings per share 2.47 1.71 +44.4
Cash dividends paid per share .385 .34 +13.2
Stock Trading
Fiscal Year 1994 Fiscal Year 1993
--------------------------------------------------------------------------
High Low High Low
1st Quarter 44 1/2 34 43 1/2 27 3/4
2nd Quarter 45 3/4 38 3/4 32 1/4 25 1/4
3rd Quarter 49 3/4 37 35 3/4 26 1/4
4th Quarter 49 1/2 39 1/2 36 1/2 31
Nordstrom, Inc. common stock is traded over-the-counter and quoted daily in
leading financial publications. NASDAQ Symbol -- Nobe.
Graph - Net Sales
The vertical bar graph compares net sales for the past ten years. Beginning
with the most recent fiscal year on the left, net sales (dollars are in
millions) were as follows: 1994-$3,894; 1993-$3,590; 1992-$3,422; 1991-$3,180;
1990-$2,894; 1989-$2,671; 1988-$2,328; 1987-$1,920; 1986-$1,630; and 1985-
$1,302.
Graph - Net Earnings
The vertical bar graph compares net earnings for the past ten years.
Beginning with the most recent fiscal year on the left, net earnings (dollars
in millions) were as follows: 1994-$203.0; 1993-$140.4; 1992-$136.6; 1991-
$135.8; 1990-$115.8; 1989-$114.9; 1988-$123.3; 1987-$92.7; 1986-$72.9; and
1985-$50.1.
3 NORDSTROM, INC. AND SUBSIDIARIES
Message to our Shareholders
Reviewing the 1994 year should be encouraging to people who are interested in
the Nordstrom company. The raw numbers tend to speak for themselves. Sales
rose to $3,894,478,000, representing an 8.5% increase, while profits set a
notable all-time high by rising to $202,958,000, a 44.5% increase. Part of the
vitality that we experienced in 1994 was due to the opening of successful new
stores at Annapolis Mall in Annapolis, MD; Santa Anita Fashion Park in
Arcadia, CA; and Old Orchard Center in Skokie, IL. In addition, we
significantly expanded two of our older units at Washington Square in
Portland, OR and Bellevue Square in Bellevue, WA.
Most of the credit for the results should go to the people who make up our
staff and management. They are the ones who have been implementing our
Inventory Management System that helped us achieve a much more efficient and
responsive stock of merchandise. We also had an aggressive expense control
effort that was supported by everyone. Finally, almost all of our merchandise
divisions lowered their markdowns which allowed us to improve our gross
margins. Our buyers operated with somewhat leaner inventories by effectively
targeting our customer base. We note that the women's apparel segment of the
retailing industry has not been doing well, but we are happy to report that
our women's apparel departments had significant increases in both sales and
profit margins.
We expect 1994 to be a good base from which to grow in 1995. The cost controls
and the merchandise disciplines that we enjoyed this past year should be
improved upon. While consumer demand is not rising in a major way, we think we
can capture a larger share of the market.
New stores will once again be the catalyst for our increased sales and the
growth of our culture. Here is the schedule for stores opening in 1995:
* March 3: Woodfield Shopping Center, Schaumburg, IL (215,000 sq. ft.)
* March 17: The Westchester, White Plains, NY (219,000 sq. ft.)
* August 18: The Mall at Short Hills, Millburn, NJ (188,000 sq. ft.)
* September 8: Circle Centre, Indianapolis, IN (216,000 sq. ft.)
* August 25: Auburn Super Mall Rack, Auburn, WA (51,000 sq. ft.)
We feel we are uniquely positioned to grow and prosper. The retail industry
is, as always, changing and it would appear that we have the financial
resources, outstanding human resources, desire and opportunities to become the
leading retailer of our type of merchandise in the country.
John A. McMillan
Bruce A. Nordstrom
James F. Nordstrom
John N. Nordstrom
NORDSTROM, INC. AND SUBSIDIARIES 4
Management Discussion and Analysis
The following discussion and analysis gives a more detailed review of the past
three years, as well as additional information on future commitments and
trends. This discussion and analysis should be read in conjunction with the
basic consolidated financial statements and the Ten-Year Statistical Summary.
Sales
Sales have increased to record levels in each of the past three years.
Fiscal Year 1994 1993 1992
--------------------------------------------------------------------------
Additional sales in comparable stores
(open at least fourteen months) 4.4% 2.7% 1.4%
Sales in new stores 4.1% 2.2% 6.2%
---- ---- ----
Total percentage increase 8.5% 4.9% 7.6%
==== ==== ====
During the past three years, the rate of growth of comparable store sales has
increased as the overall economic climate has improved. This trend has been
most noticeable in California where many of the Company's stores are located.
New stores are generally not as productive as the Company's average store, due
to the established customer base and traffic patterns which develop over time.
As a result, sales growth from new stores has grown at a lower rate than
average square footage over the past several years.
While management believes that some portion of the increase in merchandise
sales is due to inflation, it is difficult to measure because of changes in
merchandise styles and selections. The change in the retail prices of
apparel, shoes and accessories as measured by the Bureau of Labor Statistics
on an overall basis was 1% for 1992, 1% for 1993 and -1% for 1994. These
statistics indicate that inflation has been very low over the past several
years, and management believes that they are the best available measure of the
effect of inflation on the Company's selling prices.
Graph - Percentage of 1994 Sales by Merchandise Category
The pie chart depicts each merchandise category and its percent of total
sales. Clockwise: Shoes - 20%; Men's Apparel and Furnishings - 16%;
Children's Apparel and Accessories - 4%; Other - 2%; Women's Apparel - 38% and
Women's Accessories - 20%. The caption below the graph reads, "Sales by major
merchandise category have changed only slightly over the past several years."
5 NORDSTROM, INC. AND SUBSIDIARIES
Management Discussion and Analysis
Costs and Expenses
As a result of increased sales, the total amount of costs and expenses has
increased in each year. As a percentage of sales, total costs and expenses
were 93.5% in 1992, 93.6% in 1993 and 91.4% in 1994. Unless otherwise
indicated, the changes discussed below are stated as a percentage of
sales as shown on page 8.
Cost of sales and related buying and occupancy costs fluctuate as a percentage
of sales primarily because of changes in the cost of sales component. With
the changes in merchandise styles and selections from season to season, cost
of sales, and therefore the merchandise gross margin, can fluctuate up and
down. In 1993, the merchandise gross margin decreased because of the softness
in demand for women's apparel. During 1994, the merchandise margin improved
dramatically because of higher than anticipated sales increases and
implementation of a new inventory management system. Nearly all categories of
merchandise had higher margins, but women's apparel showed the greatest
improvement following the low level in 1993. Buying costs increased during
the period, as the Company spent more to develop its own merchandise brands
and to develop and implement a new inventory management system.
Selling, general and administrative expenses increased by .2% of sales in 1992
as sales growth slowed. Salaries, wages, workers' compensation claims and
medical plan benefits increased in comparable stores at a faster rate than
sales. In 1992, management implemented programs to control these expenses,
and as a result, the rate of growth of these expenses slowed in 1993. At the
same time the growth in comparable store sales increased. Selling, general
and administrative expenses decreased by .2% of sales in 1993 primarily
because of a reduction in bad debts. Bad debts continued to decline in 1994.
Medical plan benefits also decreased in 1994 as a result of changes to the
plan implemented by the Company. These decreases were offset by higher sales
promotion costs for the Company's direct sales division and a higher
contribution to the Company's profit sharing plan.
In 1992 and 1993, interest expense decreased because of lower short-term
interest rates and reductions in debt outstanding. During 1994, interest
expense decreased as more interest was capitalized on projects under
construction.
Other income in the fourth quarter of 1992 was reduced by a charge of $6.6
million ($.05 per share after income taxes) for plaintiffs' legal fees in
connection with the settlement of a class action lawsuit. The Company
had previously established a reserve for potential wage claims alleged in that
same lawsuit. The Company paid substantially all the claims by the end of
1993 and the resulting adjustment of the reserve amount increased other income
in the fourth quarter of 1993 by $4.5 million ($.03 per share after income
taxes). Also, in the fourth quarter of 1993, other income was reduced by $5
million ($.04 per share after income taxes) for expenses and property losses
resulting from an earthquake in Southern California. The Company does not
carry earthquake insurance because of its high cost.
NORDSTROM, INC. AND SUBSIDIARIES 6
Management Discussion and Analysis
Income Taxes
The provision for income taxes increased in 1992 as a percentage of earnings
before income taxes because of a reduction in deferred tax credits. In 1993,
the provision increased because of the increase in the Federal income tax
rate.
Liquidity and Capital Resources
During 1992 and 1993, cash provided by operating activities exceeded cash used
in investing activities as shown on page 11. The Company used this excess cash
flow to reduce total debt outstanding. This situation reversed in 1994 as the
Company increased its spending on new store construction and customer accounts
receivable increased.
The Company's operating working capital (net working capital less short-term
investments plus notes payable and the current portion of long-term debt) has
fluctuated as shown below:
Fiscal year 1994 1993 1992
-----------------------------------------------------------------------------
Operating working capital (in thousands) $843,924 $745,040 $765,893
Percentage change from prior year 13.3% (2.7%) 1.0%
-------- -------- --------
Net sales/average operating working capital 4.6 4.8 4.5
======== ======== ========
The Company believes that operating working capital is a more appropriate
measure of the Company's on-going working capital requirements than net
working capital because it eliminates the effect of changes in the levels of
short-term investments and borrowings. These levels can vary each year
depending on financing activities.
Operating working capital increased at a slower rate than sales in 1992, and
decreased in 1993, because of reduced customer accounts receivable. Credit
sales on the Company's credit card decreased, reflecting more cautious use of
credit by consumers in general and increased competition from third-party
cards. In 1994, customer accounts receivable increased because the Company
commenced its own Visa credit card program. The increase in customer accounts
receivable, along with higher merchandise inventories, caused operating
working capital to increase.
7 NORDSTROM, INC. AND SUBSIDIARIES
Management Discussion and Analysis
Graph - Investing and Operating Cash Flows
The vertical bar graph compares cash provided by operating activities and cash
used in investing activities for each year, for the past ten years. Dollars
are in millions.
Investing Operating
Year activities activities
---- ---------- ----------
1994 $230.4 $215.3
1993 $132.7 $262.1
1992 $ 71.9 $235.6
1991 $147.2 $154.0
1990 $200.7 $148.1
1989 $168.7 $122.2
1988 $153.4 $ 46.0
1987 $128.3 $ 87.7
1986 $ 69.8 $115.0
1985 $120.9 $ (3.5)
Liquidity and Capital Resources
The Company has spent $436 million during the last three years to add new
stores and facilities and to improve existing stores and facilities. Over 1.4
million square feet of selling space has been added during this time period,
representing an increase of 16%. Most of the new stores have been constructed
by the Company on land that it owns or leases under long-term agreements, thus
providing a strong basis for future operations.
The Company plans to spend over $750 million on capital projects during the
next three years, with over $100 million allocated to the refurbishment of
existing stores. Although the Company has made commitments for stores to be
opening in 1995 and beyond, it is possible that some stores may not be opened
as scheduled because of environmental and land use regulations and the
difficulties encountered by shopping center developers in securing financing.
The anticipated growth of the Company's operations will require some external
capital in the next three years. Most of these external capital requirements
will be funded with additional long- and short-term debt issued by the
Company's captive finance subsidiary.
The Company's capital base has expanded over the last three years. At the end
of 1994, the Company's capital totaled $1,805 million. Because the Company has
experienced strong positive cash flows, total debt outstanding has decreased
over the past three years both in total and as a percentage of total capital.
The percentage of debt to total capital is lower than it has been in over 10
years. Management believes that the expansion of the Company's operations
over the next several years will not significantly increase its debt to
capital percentage. Management also believes that the Company's current
financial strength provides the resources necessary to maintain its existing
stores and the flexibility to take advantage of new store opportunities.
Graph - Square Footage by Market Area at end of 1994
The pie chart shows the percent of total square feet in each region and also
gives the number of square feet for that region. Clockwise: Northern
California, 19.2%, 1,922,000; Washington, 13.8%, 1,374,000; Capital, 12.3%,
1,229,000; Oregon, 8.2%, 823,000; Northeast, 7.2%, 722,000; Midwest, 7.4%,
743,000; Utah, 3.6%, 357,000; Place Two and Clearance, .4%, 44,000; Alaska,
1.0%, 97,000 and Southern California, 26.9%, 2,687,000.
NORDSTROM, INC. AND SUBSIDIARIES 8
Consolidated Statements of Earnings
Dollars in thousands except per share amounts
% of % of % of
Year ended January 31, 1995 Sales 1994 Sales 1993 Sales
----------------------------------------------------------------------------------------------------
Net sales $3,894,478 100.0 $3,589,938 100.0 $3,421,979 100.0
---------- ----- ---------- ----- ---------- -----
Costs and expenses:
Cost of sales and related
buying and occupancy 2,599,553 66.7 2,469,304 68.8 2,339,107 68.3
Selling, general and
administrative 1,023,347 26.3 940,579 26.2 902,083 26.4
Interest, net 30,664 .8 37,646 1.1 44,810 1.3
Service charge income
and other, net (94,644) (2.4) (88,509) (2.5) (86,140) (2.5)
---------- ----- ---------- ----- ---------- -----
Total costs and expenses 3,558,920 91.4 3,359,020 93.6 3,199,860 93.5
---------- ----- ---------- ----- ---------- -----
Earnings before income taxes 335,558 8.6 230,918 6.4 222,119 6.5
Income taxes 132,600 3.4 90,500 2.5 85,500 2.5
---------- ----- ---------- ----- ---------- -----
Net earnings $ 202,958 5.2 $ 140,418 3.9 $ 136,619 4.0
========== ===== ========== ===== ========== =====
Net earnings per share $ 2.47 $ 1.71 $ 1.67
========== ========== ==========
Cash dividends paid per share $ .385 $ .34 $ .32
========== ========== ==========
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
9 NORDSTROM, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
Dollars in thousands
January 31, 1995 1994
-----------------------------------------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 32,497 $ 91,222
Accounts receivable, net 675,891 586,441
Merchandise inventories 627,930 585,602
Prepaid income taxes and other 61,395 51,649
---------- ----------
Total current assets 1,397,713 1,314,914
Property, buildings and equipment, net 984,195 845,596
Other assets 14,875 16,971
---------- ----------
Total assets $2,396,783 $2,177,481
========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Notes payable $ 87,388 $ 40,337
Accounts payable 273,084 264,055
Accrued salaries, wages and taxes 190,501 156,947
Accrued expenses 40,990 35,994
Accrued income taxes 22,524 27,988
Current portion of long-term debt 75,967 102,164
---------- ----------
Total current liabilities 690,454 627,485
Long-term debt 297,943 336,410
Deferred income taxes and other 64,586 47,082
Shareholders' equity 1,343,800 1,166,504
---------- ----------
Total liabilities and shareholders' equity $2,396,783 $2,177,481
========== ==========
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
NORDSTROM, INC. AND SUBSIDIARIES 10
Consolidated Statements of Shareholders' Equity
Dollars in thousands except per share amounts
Year ended January 31, 1995 1994 1993
------------------------------------------------------------------------------------------------------
Common Stock
Authorized 250,000,000 shares; issued and outstanding
82,244,098, 82,059,128 and 81,974,797 shares
Balance at beginning of year $ 157,374 $ 155,439 $ 153,055
Issuance of common stock 5,960 1,935 2,384
---------- ---------- ----------
Balance at end of year 163,334 157,374 155,439
---------- ---------- ----------
Retained Earnings
Balance at beginning of year 1,009,130 896,592 786,176
Net earnings 202,958 140,418 136,619
Cash dividends paid ($.385, $.34, and $.32 per share) (31,622) (27,880) (26,203)
---------- ---------- ----------
Balance at end of year 1,180,466 1,009,130 896,592
---------- ---------- ----------
Total shareholders' equity $1,343,800 $1,166,504 $1,052,031
========== ========== ==========
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
11 NORDSTROM, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Dollars in thousands
Year ended January 31, 1995 1994 1993
-----------------------------------------------------------------------------------------------------------
Operating Activities
Net earnings $202,958 $140,418 $136,619
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 110,789 103,466 102,763
Change in:
Accounts receivable, net (89,450) 16,757 5,029
Merchandise inventories (42,328) (48,863) (30,107)
Prepaid income taxes and other (9,746) (878) (2,643)
Accounts payable 9,029 43,879 3,744
Accrued salaries, wages and taxes 33,554 (1,081) 12,236
Accrued expenses 4,996 4,853 (600)
Income tax liabilities (4,518) 3,540 8,586
-------- -------- --------
Net cash provided by operating activities 215,284 262,091 235,627
-------- -------- --------
Investing Activities
Additions to property, buildings and equipment, net (232,050) (124,401) (69,982)
Other, net 1,660 (8,306) (1,870)
-------- -------- --------
Net cash used in investing activities (230,390) (132,707) (71,852)
-------- -------- --------
Financing Activities
Increase (decrease) in notes payable 47,051 2,018 (96,416)
Proceeds from issuance of long-term debt, net 49,656 - -
Principal payments on long-term debt (114,664) (43,371) (29,055)
Proceeds from issuance of common stock 5,960 1,935 2,384
Cash dividends paid (31,622) (27,880) (26,203)
-------- -------- --------
Net cash used in financing activities (43,619) (67,298) (149,290)
-------- -------- --------
Net (decrease) increase in cash and cash equivalents (58,725) 62,086 14,485
Cash and cash equivalents at beginning of year 91,222 29,136 14,651
-------- -------- --------
Cash and cash equivalents at end of year $ 32,497 $ 91,222 $ 29,136
======== ======== ========
<FN>
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
NORDSTROM, INC. AND SUBSIDIARIES 12
Notes to Consolidated Financial Statements
Dollars in thousands except per share amounts
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation: The Consolidated Financial Statements include the
accounts of Nordstrom, Inc. and its subsidiaries. All significant
intercompany transactions and accounts are eliminated in consolidation.
Merchandise Inventories: Merchandise inventories are stated at the lower of
cost (first-in, first-out basis) or market, using the retail method.
Property, Buildings and Equipment: Straight-line and accelerated methods are
applied in the calculation of depreciation and amortization.
Lives used for calculating depreciation and amortization rates for the
principal asset classifications are as follows: buildings, 10 to 50 years;
store fixtures and equipment, three to 15 years; leasehold improvements,
life of lease or applicable shorter period.
Store Preopening Costs: Store opening and preopening costs are charged to
expense when incurred.
Capitalization of Interest: The interest carrying costs of facilities being
constructed are capitalized during their construction period based on the
Company's weighted average borrowing rate.
Earnings per Share: Earnings per share are computed on the basis of the
weighted average number of common shares outstanding during the year. Average
shares outstanding were 82,144,079, 82,003,407 and 81,892,829 in 1994, 1993
and 1992.
Cash Equivalents: The Company considers all short-term investments with a
maturity at date of purchase of three months or less to be cash equivalents.
The carrying amount approximates fair value because of the short maturity of
these instruments.
Customer Accounts Receivable: In accordance with trade practices,
installments maturing in more than one year or deferred payment accounts
receivable are included in current assets.
Cash Management: The Company's cash management system provides for the
reimbursement of all major bank disbursement accounts on a daily basis.
Accounts payable at January 31, 1995 and 1994 include $29,223 and $15,817
of checks drawn in excess of cash balances not yet presented for payment.
13 NORDSTROM, INC. AND SUBSIDIARIES
Derivatives: The Company limits its use of derivative financial instruments
to the management of well-defined foreign currency and interest rate risks.
The effect of these activities is not material to the Company's financial
condition or results of operations. The Company has no off-balance sheet
credit risk, and the fair value of derivative financial instruments at January
31, 1995 and 1994 is not material.
NOTE 2: EMPLOYEE BENEFITS
The Company provides a profit sharing plan for employees. The plan is fully
funded by the Company and is non-contributory except for employee
contributions made under Section 401(k) of the Internal Revenue Code. Under
this provision, the Company provides matching contributions up to a stipulated
percentage of employee contributions. The Company contribution is established
each year by the Board of Directors and totaled $44,000, $35,500 and $34,000
for 1994, 1993 and 1992.
NOTE 3: INTEREST EXPENSE
The components of interest expense are as follows:
Year ended January 31, 1995 1994 1993
------------------------------------------------------------------------
Nordstrom, Inc.
Short-term debt $ 69 $ 46 $ 799
Long-term debt 10,780 12,830 14,084
Nordstrom Credit, Inc.
Short-term debt 5,085 2,361 4,474
Long-term debt 23,161 25,543 28,906
------- ------- -------
Total interest incurred 39,095 40,780 48,263
Less: Interest income (2,416) (1,624) (1,161)
Capitalized interest (6,015) (1,510) (2,292)
------- ------- -------
Interest, net $30,664 $37,646 $44,810
======= ======= =======
NORDSTROM, INC. AND SUBSIDIARIES 14
NOTE 4: INCOME TAXES
Income taxes consist of the following:
Year ended January 31, 1995 1994 1993
-------------------------------------------------------------------------
Current income taxes:
Federal $118,558 $77,231 $71,181
State and local 23,986 16,149 14,931
-------- ------- -------
Total current income taxes 142,544 93,380 86,112
-------- ------- -------
Deferred income taxes:
Current (10,113) (648) (3,588)
Non-current 169 (2,232) 2,976
-------- ------- -------
Total deferred income taxes (9,944) (2,880) (612)
-------- ------- -------
Total income taxes $132,600 $90,500 $85,500
======== ======= =======
A reconciliation of the statutory Federal income tax rate with the
effective tax rate is as follows:
Year ended January 31, 1995 1994 1993
------------------------------------------------------------------------
Statutory rate 35.00% 35.00% 34.00%
State and local income taxes, net
of Federal income taxes 4.39 4.41 4.38
Other, net .11 (0.21) 0.11
------- ------- -------
Effective tax rate 39.50% 39.20% 38.49%
======= ======= =======
Deferred income taxes result from temporary differences in the timing of
recognition of revenue and expenses for tax and financial statement
reporting as follows:
Year ended January 31, 1995 1994 1993
------------------------------------------------------------------------
Excess tax basis depreciation $ 521 $ 740 $2,342
Accrued expenses (4,416) (2,850) (3,039)
Other (6,049) (770) 85
------- ------- -------
Total deferred income taxes ($9,944) ($2,880) ($ 612)
======= ======= =======
These items comprise substantially all of the deferred tax asset and liability
balances.
15 NORDSTROM, INC. AND SUBSIDIARIES
NOTE 5: ACCOUNTS RECEIVABLE
The components of accounts receivable are as follows:
January 31, 1995 1994
------------------------------------------------------------------------
Customers $678,673 $588,296
Other 20,176 21,290
Allowance for doubtful accounts (22,958) (23,145)
-------- --------
Accounts receivable, net $675,891 $586,441
======== ========
Credit risk with respect to accounts receivable is concentrated in the
geographic regions in which the Company operates stores. At January 31, 1995
and 1994, approximately 50% of the Company's receivables were concentrated in
California. Concentration of the remaining receivables is considered to be
limited due to their geographical dispersion.
Bad debt expense totaled $20,219, $25,713 and $29,469 for 1994, 1993 and 1992.
NOTE 6: PROPERTY, BUILDINGS AND EQUIPMENT
Property, buildings and equipment consist of the following (at cost):
January 31, 1995 1994
------------------------------------------------------------------------
Land and land improvements $ 42,355 $ 41,810
Buildings 423,342 404,910
Leasehold improvements 520,729 471,293
Store fixtures and equipment 595,288 510,789
---------- ----------
1,581,714 1,428,802
Less accumulated depreciation
and amortization (746,712) (654,026)
---------- ----------
835,002 774,776
Construction in progress 149,193 70,820
---------- ----------
Property, buildings and equipment, net $ 984,195 $ 845,596
========== ==========
At January 31, 1995 the Company had contractual commitments of approximately
$125,366 for construction of new stores.
NORDSTROM, INC. AND SUBSIDIARIES 16
NOTE 7: NOTES PAYABLE
A summary of notes payable is as follows:
Year ended January 31, 1995 1994 1993
------------------------------------------------------------------------
Average daily short-term
borrowings $106,092 $ 76,779 $141,979
Maximum amount outstanding 209,605 117,023 186,038
Weighted average interest rate:
During the year 4.9% 3.1% 3.7%
At year-end 6.0% 3.1% 3.1%
The carrying amount of notes payable approximates fair value because of the
short maturity of these instruments.
At January 31, 1995, Nordstrom Credit, Inc. had unsecured lines of credit with
commercial banks totaling $225,000 which are available as liquidity support
for short-term debt, and expire in June 1995 and January 1998. Nordstrom
Credit, Inc. pays commitment fees for the lines in lieu of compensating
balance requirements.
NOTE 8: LONG-TERM DEBT
A summary of long-term debt is as follows:
January 31, 1995 1994
------------------------------------------------------------------------
Senior notes, 8.875%-9%, due 1995-1998 $100,000 $150,000
Medium-term notes,
Nordstrom Credit, Inc.,
7.83%-9.6%, due 1995-2001 209,000 210,000
Sinking fund debentures,
Nordstrom Credit, Inc., 9.375%, due 2016,
payable in annual installments of $3,750
beginning in 1997 43,100 55,600
Other 21,810 22,974
-------- --------
Total long-term debt 373,910 438,574
Less current portion (75,967) (102,164)
-------- --------
Total due beyond one year $297,943 $336,410
======== ========
17 NORDSTROM, INC. AND SUBSIDIARIES
The senior note agreements contain restrictive covenants which, among other
things, restrict dividends to shareholders to a formula amount. At January
31, 1995, approximately $664,290 of retained earnings was not restricted.
Aggregate principal payments on long-term debt are as follows: 1995-$75,967;
1996-$74,210; 1997-$55,053; 1998-$105,183 and 1999-$5,076.
The fair value of long-term debt, estimated using quoted market prices of the
same or similar issues with the same remaining maturity, was approximately
$381,000 and $478,000 at January 31, 1995 and 1994.
NOTE 9: LEASES
The Company leases land, buildings and equipment under non-cancelable lease
agreements with expiration dates ranging from 1995 to 2080. Certain of the
leases include renewal provisions at the Company's option. Most of the leases
provide for additional rentals based upon specific percentages of sales and
require the Company to pay for certain other costs.
Future minimum lease payments as of January 31, 1995 are as follows: 1995-
$27,972; 1996-$27,116; 1997-$26,358; 1998-$25,298; 1999-$24,324; and
thereafter -$201,418.
The following is a schedule of rent expense:
Year ended January 31, 1995 1994 1993
------------------------------------------------------------------------
Minimum rent:
Store locations $16,467 $14,899 $14,719
Offices, warehouses and equipment 18,336 19,390 17,660
Contingent rent:
Store location percentage rent 14,078 13,964 13,398
Common area costs, taxes and other 8,860 8,692 8,105
------- ------- -------
Total rent expense $57,741 $56,945 $53,882
======= ======= =======
NOTE 10: STOCK OPTION PLAN
The Company provides a stock option plan for certain key employees. Options
are issued at market value on the date of grant and become exercisable over a
five-year period. The number of shares reserved for future stock option
grants is 869,334.
NORDSTROM, INC. AND SUBSIDIARIES 18
A summary of stock option activity follows:
Range of prices
Shares per share
------------------------------------------------------------------------
Outstanding, February 1, 1994 1,732,464 $ 7.44-$43.25
Granted 345,770 43.88- 48.25
Exercised (182,662) 7.44- 43.25
Cancelled (17,322) 22.00- 43.88
--------- -------------
Outstanding, January 31, 1995 1,878,250 $12.88-$48.25
========= =============
Exercisable, January 31, 1995 964,023 $12.88-$43.25
========= =============
NOTE 11: SUPPLEMENTARY CASH FLOW INFORMATION
Supplementary cash flow information includes the following:
Year ended January 31, 1995 1994 1993
------------------------------------------------------------------------
Cash paid during the year for:
Interest (net of capitalized
interest) $ 34,520 $41,122 $47,994
Income taxes 146,590 86,485 79,740
NOTE 12: CREDIT CARD AND FINANCING SUBSIDIARIES
Nordstrom National Credit Bank (the Bank), a wholly owned subsidiary, issues a
credit card for use in Company stores, and in 1994 introduced a VISA card.
Nordstrom Credit, Inc., a wholly owned subsidiary, finances all receivables
generated through the use of these credit cards. Servicing of the receivables
is performed by the Bank. At January 31, 1995, net VISA receivables totaled
$85,211.
19 NORDSTROM, INC. AND SUBSIDIARIES
Condensed combined financial information of the subsidiaries is as follows:
Year ended January 31, 1995 1994 1993
------------------------------------------------------------------------
Service charge income $ 92,591 $91,026 $92,553
Other income 12,525 5,086 4,121
-------- ------- -------
Total revenue $105,116 $96,112 $96,674
======== ======= =======
Net earnings $ 23,019 $22,209 $19,699
======== ======= =======
January 31, 1995 1994
------------------------------------------------------------------------
Assets:
Cash and cash equivalents $ 24,286 $ 21,972
Accounts receivable, net 655,427 564,605
Other assets 7,650 8,527
-------- --------
Total assets $687,363 $595,104
======== ========
Liabilities and investment of Nordstrom, Inc.:
Notes Payable:
Nordstrom, Inc. $148,000 $112,500
Other 87,388 40,337
Accounts payable and accrued liabilities 21,091 20,902
Long-term debt 252,100 265,600
Investment of Nordstrom, Inc. 178,784 155,765
-------- --------
Total liabilities and investment
of Nordstrom, Inc. $687,363 $595,104
======== ========
20 NORDSTROM, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
NOTE 13: SELECTED QUARTERLY DATA (UNAUDITED)
Year ended January 31, 1995 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total
--------------------------------------------------------------------------------------------------------
Net sales $762,062 $1,079,501 $861,968 $1,190,947 $3,894,478
Gross profit 251,927 355,841 292,656 394,501 1,294,925
Earnings before income taxes 52,773 104,223 63,079 115,483 335,558
Net earnings 31,973 63,023 38,079 69,883 202,958
Earnings per share .39 .77 .46 .85 2.47
Dividends per share .085 .10 .10 .10 .385
Year ended January 31, 1994 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total
--------------------------------------------------------------------------------------------------------
Net sales $695,559 $1,017,582 $769,373 $1,107,424 $3,589,938
Gross profit 212,971 306,565 245,057 356,041 1,120,634
Earnings before income taxes 18,395 70,151 42,056 100,316 230,918
Net earnings 11,295 42,651 25,456 61,016 140,418
Earnings per share .14 .52 .31 .74 1.71
Dividends per share .085 .085 .085 .085 .34
21 NORDSTROM, INC. AND SUBSIDIARIES
Management and Independent Auditors' Reports
REPORT OF MANAGEMENT
The accompanying consolidated financial statements, including the notes
thereto, and the other financial information presented in this Annual Report
have been prepared by management. The financial statements have been prepared
in accordance with generally accepted accounting principles and include
amounts that are based upon our best estimates and judgments. Management is
responsible for the consolidated financial statements, as well as the other
financial information in this Annual Report.
The Company maintains an effective system of internal accounting control. We
believe that this system provides reasonable assurance that transactions are
executed in accordance with management authorization, and that they are
appropriately recorded, in order to permit preparation of financial statements
in conformity with generally accepted accounting principles and to adequately
safeguard, verify and maintain accountability of assets. The concept of
reasonable assurance is based on the recognition that the cost of a system of
internal control should not exceed the benefits derived.
The consolidated financial statements and related notes have been audited by
Deloitte & Touche LLP, independent certified public accountants. The
accompanying auditors' report expresses an independent professional opinion on
the fairness of presentation of management's financial statements.
The Audit Committee of the Board of Directors is composed of the outside
directors, and is responsible for recommending the independent certified
public accounting firm to be retained for the coming year, subject to
shareholder approval. The Audit Committee meets periodically with the
independent auditors, as well as with management and internal auditors, to
review accounting, auditing, internal accounting controls and financial
reporting matters. The independent auditors and the internal auditors also
meet privately with the Audit Committee.
John A. Goesling
Executive Vice President and Chief Financial Officer
NORDSTROM, INC. AND SUBSIDIARIES 22
INDEPENDENT AUDITORS' REPORT
We have audited the accompanying consolidated balance sheets of Nordstrom,
Inc. and subsidiaries as of January 31, 1995 and 1994, and the related
consolidated statements of earnings, shareholders' equity and cash flows for
each of the three years in the period ended January 31, 1995. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such consolidated financial statements present fairly, in all
material respects, the financial position of Nordstrom, Inc. and subsidiaries
as of January 31, 1995 and 1994, and the results of their operations and their
cash flows for each of the three years in the period ended January 31, 1995,
in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Seattle, Washington; March 10, 1995
23 NORDSTROM, INC. AND SUBSIDIARIES
Ten-Year Statistical Summary
Dollars in thousands except square footage and per share amounts
Year ended January 31, 1995 1994 1993 1992 1991
------------------------------------------------------------------------------------------------------------
Financial Position
Customer accounts receivable, net $ 655,715 $ 565,151 $ 584,379 $ 585,490 $558,573
Merchandise inventories 627,930 585,602 536,739 506,632 448,344
Current assets 1,397,713 1,314,914 1,219,844 1,177,638 1,090,379
Current liabilities 690,454 627,485 511,196 553,903 551,835
Working capital 707,259 687,429 708,648 623,735 538,544
Working capital ratio 2.02 2.10 2.39 2.13 1.98
Property, buildings and equipment, net 984,195 845,596 824,142 856,404 806,191
Long-term debt 373,910 438,574 481,945 511,000 489,172
Debt/capital ratio 25.56 29.11 33.09 40.74 43.59
Shareholders' equity 1,343,800 1,166,504 1,052,031 939,231 826,410
Shares outstanding 82,244,098 82,059,128 81,974,797 81,844,227 81,737,910
Book value per share 16.34 14.22 12.83 11.48 10.11
Total assets 2,396,783 2,177,481 2,053,170 2,041,875 1,902,589
Operations
Net sales 3,894,478 3,589,938 3,421,979 3,179,820 2,893,904
Costs and expenses:
Cost of sales and related
buying and occupancy 2,599,553 2,469,304 2,339,107 2,169,437 2,000,250
Selling, general and administrative 1,023,347 940,579 902,083 831,505 747,770
Interest, net 30,664 37,646 44,810 49,106 52,228
Service charge income and other, net (94,644) (88,509) (86,140) (87,443) (84,660)
Total costs and expenses 3,558,920 3,359,020 3,199,860 2,962,605 2,715,588
Earnings before income taxes 335,558 230,918 222,119 217,215 178,316
Income taxes 132,600 90,500 85,500 81,400 62,500
Net earnings 202,958 140,418 136,619 135,815 115,816
Earnings per share 2.47 1.71 1.67 1.66 1.42
Dividends per share .385 .34 .32 .31 .30
Net earnings as a percent of net sales 5.21% 3.91% 3.99% 4.27% 4.00%
Return on average shareholders' equity 16.17% 12.66% 13.72% 15.38% 14.85%
Sales per square foot for Company-
operated stores 395 383 381 388 391
Stores and Facilities
Company-operated stores 76 74 72 68 63
Total square footage 9,998,000 9,282,000 9,224,000 8,590,000 7,655,000
24 NORDSTROM INC. AND SUBSIDIARIES
Ten-Year Statistical Summary (continued)
Dollars in thousands except square footage and per share amounts
-----------------------------------------------------------------------------------------------------------
Year ended January 31, 1990 1989 1988 1987 1986
-----------------------------------------------------------------------------------------------------------
Financial Position
Customer accounts receivable, net $ 519,656 $ 465,929 $ 391,387 $ 344,045 $ 296,030
Merchandise inventories 419,976 403,795 312,696 257,334 226,017
Current assets 1,011,148 913,986 730,182 645,326 546,756
Current liabilities 489,888 448,165 394,699 324,697 339,503
Working capital 521,260 465,821 335,483 320,629 207,253
Working capital ratio 2.06 2.04 1.85 1.99 1.61
Property, buildings and equipment, net 691,937 594,038 502,661 424,228 397,380
Long-term debt 468,412 389,216 260,343 271,054 276,419
Debt/capital ratio 43.78 43.12 39.57 41.57 56.41
Shareholders' equity 733,250 639,941 533,209 451,196 314,119
Shares outstanding 81,584,710 81,465,027 81,371,106 80,981,722 74,504,392
Book value per share 8.99 7.86 6.55 5.57 4.22
Total assets 1,707,420 1,511,703 1,234,267 1,071,124 945,880
Operations
Net sales 2,671,114 2,327,946 1,920,231 1,629,918 1,301,857
Costs and expenses:
Cost of sales and related
buying and occupancy 1,829,383 1,563,832 1,300,720 1,095,584 893,874
Selling, general and administrative 669,159 582,973 477,488 408,664 326,758
Interest, net 49,121 39,977 32,952 34,910 30,482
Service charge income and other, net (55,958) (57,268) (53,662) (49,479) (36,636)
Total costs and expenses 2,491,705 2,129,514 1,757,498 1,489,679 1,214,478
Earnings before income taxes 179,409 198,432 162,733 140,239 87,379
Income taxes 64,500 75,100 70,000 67,300 37,300
Net earnings 114,909 123,332 92,733 72,939 50,079
Earnings per share 1.41 1.51 1.13 .91 .65
Dividends per share .28 .22 .18 .13 .11
Net earnings as a percent of net sales 4.30% 5.30% 4.83% 4.48% 3.85%
Return on average shareholders' equity 16.74% 21.03% 18.84% 19.06% 17.10%
Sales per square foot for Company-
operated stores 398 380 349 322 293
Stores and Facilities
Company-operated stores 59 58 56 53 52
Total square footage 6,898,000 6,374,000 5,527,000 5,098,000 4,727,000
25 NORDSTROM INC. AND SUBSIDIARIES
Officers, Directors and Committees
Officers
Jammie Baugh 41 Executive Vice President Southern California
General Manager
Gail A. Cottle 43 Executive Vice President Product Development
Dale C. Crichton 46 Vice President Cosmetics and Gift
Gallery Merchandise
Manager
Joseph V. Demarte 43 Vice President Personnel
Annette S. Dresser 34 Vice President Individualist and
Petite Focus
Merchandise Manager
Charles L. Dudley 44 Vice President Human Resources
John A. Goesling 49 Executive Vice President Finance
and Treasurer
Tamela J. Hickel 34 Vice President Oregon General Manager
Darrel J. Hume 47 Vice President Men's Sportswear
Merchandise Manager
Jack F. Irving 50 Executive Vice President Men's Wear Merchandise
Manager
Raymond A. Johnson 53 Co-President
Cody K. Kondo 39 Vice President Northeast General
Manager
David P. Lindsey 45 Vice President Store Planning
David L. Mackie 46 Vice President Real Estate
Robert J. Middlemas 38 Vice President Midwest General
Manager
Blake W. Nordstrom 34 Vice President Washington and Alaska
General Manager
James A. Nordstrom 33 Vice President Northern California
General Manager
NORDSTROM, INC. AND SUBSIDIARIES 26
Robert T. Nunn 55 Executive Vice President Shoe Merchandise
Manager
Cynthia C. Paur 44 Executive Vice President Better Apparel
Merchandise Manger
Karen E. Purpur 51 Secretary
John J. Whitacre 42 Co-President
Martha S. Wikstrom 38 Vice President Capital General
Manager
27 NORDSTROM, INC. AND SUBSIDIARIES
Directors
Philip M. Condit 53 Director President, The Boeing Company,
Seattle, WA
D. Wayne Gittinger 62 Director Partner, Lane Powell Spears
Lubersky, Seattle, WA
John F. Harrigan 69 Director Retired Chairman, Union Bank,
Los Angeles, CA
Charles A. Lynch 67 Director Chairman, Market Value Partners
Company, Menlo Park, CA
Ann D. McLaughlin 53 Director President, Federal City Council,
Washington, D.C. and Vice
Chairman, The Aspen Institute,
Aspen, CO
John A. McMillan 63 Co-Chairman of the Board of Directors
Bruce A. Nordstrom 61 Co-Chairman of the Board of Directors
James F. Nordstrom 55 Co-Chairman of the Board of Directors
John N. Nordstrom 57 Co-Chairman of the Board of Directors
Alfred E. Osborne, Jr. 50 Director Director, Entrepreneurial Studies
Center and Associate Professor
of Business Economics, The John
E. Anderson Graduate School of
Management, University of
California, Los Angeles, CA
William D. Ruckelshaus 62 Director Chairman of the Board and Chief
Executive Officer,
Browning-Ferris Industries,
Inc., Houston, TX
Malcolm T. Stamper 69 Director Publisher, Chairman and Chief
Executive Officer,
Storytellers, Ink., Seattle, WA
Elizabeth Crownhart Vaughan 66 Director President, Salar Enterprises,
Portland, OR
NORDSTROM, INC. AND SUBSIDIARIES 28
Committees
EXECUTIVE
John A. McMillan
Bruce A. Nordstrom, Co-Chair
James F. Nordstrom
John N. Nordstrom, Co-Chair
AUDIT
Philip M. Condit
John F. Harrigan
Charles A. Lynch
Ann D. McLaughlin
Alfred E. Osborne, Jr.
William D. Ruckelshaus, Chair
Elizabeth Crownhart Vaughan
COMPENSATION AND STOCK OPTION
D. Wayne Gittinger
John F. Harrigan
Ann D. McLaughlin
Alfred E. Osborne, Jr.
William D. Ruckelshaus
Elizabeth Crownhart Vaughan, Chair
CONTRIBUTIONS
Anne E. Gittinger, Secretary-ex officio
Bruce A. Nordstrom
James F. Nordstrom, Chair
John N. Nordstrom
William D. Ruckelshaus
Malcolm T. Stamper
FINANCE
Philip M. Condit
John A. Goesling-ex officio
John F. Harrigan, Chair
Charles A. Lynch
Alfred E. Osborne, Jr.
Malcolm T. Stamper
ORGANIZATION AND NOMINATING
D. Wayne Gittinger
Charles A. Lynch
Malcolm T. Stamper, Chair
Elizabeth Crownhart Vaughan
PROFIT SHARING AND BENEFITS
Joseph V. Demarte-ex officio
D. Wayne Gittinger
Raymond A. Johnson-ex officio
Bruce A. Nordstrom, Chair
John N. Nordstrom
NORDSTROM, INC. AND SUBSIDIARIES 29
Retail Store Facilities
The following table sets forth certain information with respect to each of the stores operated by the
Company. The Company also operates leased shoe departments in 12 department stores in Hawaii and Guam. In
addition, the Company operates seven distribution centers and leases other space for administrative
functions.
Present Year Present
Year opened total store opened or total store
Location or acquired area/sq. ft. Location acquired area/sq. ft.
------------------------------------------------ -------------------------------------------------
WASHINGTON GROUP NORTHERN CALIFORNIA GROUP
Downtown Seattle(1) 1963 245,000 Hillsdale Shopping Center 1982 149,000
Northgate Mall 1965 122,000 Broadway Plaza 1984 193,000
Tacoma Mall 1966 134,000 Stanford Shopping Center 1984 187,000
Bellevue Square 1967 285,000 The Village at Corte Madera 1985 116,000
Southcenter Mall 1968 170,000 Oakridge Mall 1985 150,000
Yakima 1972 44,000 Valley Fair 1987 165,000
Spokane 1974 121,000 280 Metro Center Rack 1987 31,000
Alderwood Mall 1979 127,000 Stonestown Galleria 1988 174,000
Pavilion Rack 1985 39,000 Downtown San Francisco 1988 350,000
Alderwood Rack 1985 25,000 Arden Fair 1989 190,000
Downtown Seattle Rack 1987 42,000 Stoneridge Mall 1990 173,000
Bellis Fair Rack 1990 20,000 Marina Square Rack 1990 44,000
OREGON GROUP UTAH GROUP
Lloyd Center 1963 150,000 Crossroads Plaza 1980 140,000
Downtown Portland 1966 174,000 Fashion Place Mall 1981 110,000
Washington Square 1974 189,000 Ogden City Mall 1982 76,000
Vancouver Mall 1977 71,000 Sugarhouse Center Rack 1991 31,000
Salem Centre 1980 71,000
Clackamas Town Center 1981 121,000 CAPITAL GROUP
Clackamas Rack 1983 28,000 Tysons Corner Center 1988 239,000
Downtown Portland Rack 1986 19,000 The Fashion Centre at
Pentagon City 1989 241,000
31 NORDSTROM, INC. AND SUBSIDIARIES
SOUTHERN CALIFORNIA GROUP Potomac Mills Rack 1990 46,000
South Coast Plaza 1978 235,000 Montgomery Mall 1991 225,000
Brea Mall 1979 195,000 City Place Rack 1992 37,000
Los Cerritos Center 1981 122,000 Towson Town Center 1992 205,000
Fashion Valley Mall 1981 156,000 Towson Rack 1992 31,000
Glendale Galleria 1983 147,000 Franklin Mills Rack 1993 43,000
Santa Ana Rack 1983 22,000 Annapolis Mall 1994 162,000
Topanga Plaza 1984 154,000
University Towne Centre 1984 130,000 NORTHEAST GROUP
Woodland Hills Rack 1984 48,000 Garden State Plaza 1990 272,000
The Galleria at South Bay 1985 161,000 Menlo Park Mall 1991 266,000
Westside Pavilion 1985 150,000 Freehold Raceway Mall 1992 174,000
Horton Plaza 1985 151,000 Faconnable 1993 10,000
Mission Valley Rack 1985 27,000
Montclair Plaza 1986 133,000 MIDWEST GROUP
North County Fair 1986 156,000 Oakbrook Center 1991 249,000
MainPlace Mall 1987 169,000 Mall of America 1992 240,000
Chino Town Square Rack 1987 30,000 Old Orchard 1994 209,000
Paseo Nuevo 1990 186,000 Woodfield Rack 1994 45,000
The Galleria at Tyler 1991 164,000
Santa Anita 1994 151,000 PLACE TWO AND CLEARANCE
STORES
ALASKA GROUP Washington and Arizona(2) 44,000
Anchorage 1975 97,000
<FN>
(1) Excludes approximately 23,000 square feet of corporate and administrative
offices.
(2) Includes one Place Two store and one clearance store.
Shareholder Information
Independent Auditors
Deloitte & Touche LLP
Counsel
Lane Powell Spears Lubersky
Transfer Agent and Registrar
First Interstate Bank of California
Telephone (800) 522-6645
General Offices
1501 Fifth Avenue, Seattle, WA 98101-1603
Telephone (206) 628-2111
Annual Meeting
May 16, 1995 at 11:00 a.m. Pacific Time
Sheraton Seattle Hotel and Towers
Seattle, Washington
Form 10-K
The Company's Annual Report to the Securities and Exchange Commission on Form
10-K for the year ended January 31, 1995 will be provided to shareholders upon
written request to: Investors Relations, Nordstrom, Inc., P.O. Box 2737,
Seattle, WA 98111 or by calling (206) 233-6301.
Shareholder Information Line
In order to provide our shareholders with information about the Company in a
more timely manner, as well as to reduce paper use, we will be establishing a
shareholder information line. We will no longer be mailing quarterly
shareholder reports. Effective April 14, 1995, shareholders will be able to
obtain the latest financial releases and updates as soon as they are
available, by dialing 1-800-667-3920.
NORDSTROM, INC. AND SUBSIDIARIES
Appendix
Graph Page
------------------------------------------------ ----
Net Sales 2
Net Earnings 2
Percentage of 1994 Sales by Merchandise Category 4
Investing and Operating Cash Flows 7
Square Footage by Market Area at end of 1994 7