Nordstrom (ticker: JWN, exchange: New York Stock Exchange (.N))
News Release -
Nordstrom Reports First Quarter 2002 ResultsSEATTLE, May 15, 2002 /PRNewswire-FirstCall via COMTEX/ -- Nordstrom, Inc.
(NYSE: JWN) today reported first quarter net earnings of $30.4 million, or $0.22
per diluted share, excluding non-recurring items and the impact of adopting a
new accounting standard related to goodwill. For the first quarter of 2001, net
earnings and earnings per share were $24.8 million and $0.18, respectively.
(Photo: http://www.newscom.com/cgi-bin/prnh/20001011/NORDLOGO )
First quarter 2002 earnings were reduced $21.9 million (pre-tax) or $0.10 per
share for a non-cash transition charge related to the adoption of the new
accounting standard (SFAS No. 142). First quarter 2002 earnings will be further
reduced by a non-recurring charge related to the purchase of Benchmark Capital
Partners' and Madrona Investment Group's minority interest in Nordstrom.com. The
exact dollar amount of this charge is not yet determinable but will be included
in the Company's first quarter form 10Q, which will be filed no later than June
Net sales for the first quarter of 2002 increased 2.3 percent, to $1.25 billion,
compared to sales of $1.22 billion in the same period in 2001. Sales in
comparable stores decreased 2.1 percent.
"We are encouraged with our continued progress on a number of initiatives,
including expense and inventory management," commented President Blake
Nordstrom. "However, our number one priority continues to be driving top-line
growth. While our comparable-store sales were negative for the quarter, we are
beginning to see improving sales trends in certain areas of our business,
reflecting a better balance of fashion, brands and prices. We remain focused on
addressing opportunities to increase volume."
Nordstrom opened three full-line stores during the first quarter of 2002 --
Durham, N.C.; Los Angeles, Calif.; and Orem, Utah. The company also opened two
Nordstrom Rack stores during the quarter, in King of Prussia, Pa. and Fresno,
Calif. Throughout the remainder of the year ending January 31, 2003, Nordstrom
expects to open five full-line stores, in Dulles, Va.; St. Louis, Mo.; Coral
Gables, Fla.; Orlando, Fla.; and Las Vegas, Nev. It also plans to open three
additional Nordstrom Racks. For the entire year, gross square footage is
expected to increase approximately 8 percent, from 17,048,000 to 18,420,000.
For the second quarter of 2002, the Company anticipates diluted earnings per
share in the range of $0.34 to $0.38, excluding non-recurring charges related to
Nordstrom.com, versus $0.29 in the prior year, reflecting improving merchandise
margins and selling, general and administrative expenses, with flat to slightly
negative comparable-store sales. For the fiscal year ending January 31, 2003,
the Company is raising its prior earnings per share guidance of $1.10-$1.15 to
$1.18-$1.22, excluding non-recurring and impairment charges.
Nordstrom, Inc. is one of the nation's leading fashion specialty retailers, with
136 US stores located in 26 states. Founded in 1901 as a shoe store in Seattle,
Nordstrom today operates 83 full-line stores, 46 Nordstrom Racks, four U.S.
Faconnable boutiques, two freestanding shoe stores, and one clearance store.
Nordstrom also operates 24 international Faconnable boutiques, primarily in
Europe. Additionally, Nordstrom serves customers through its online presence at
http://www.nordstrom.com and through its direct mail catalogs.
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 earnings, store openings
and distribution channels, planned capital expenditures, 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 company's ability to predict fashion trends, consumer
apparel buying patterns, the company's ability to control costs, weather
conditions, hazards of nature such as earthquakes and floods, trends in personal
bankruptcies and bad debt write-offs, employee relations, the company's ability
to continue its expansion plans, and the impact of economic and competitive
market forces, including the impact of the recent terrorist activity on the
company, its customers and the industry.
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.
CONSOLIDATED STATEMENTS OF EARNINGS - 1st Quarter
(unaudited; amounts in thousands, except per share data and percentages)
3 months % of sales 3 months % of sales
ended (except as ended (except as
04/30/02 indicated) 04/30/01 indicated)
Net sales(A) $ 1,245,761(B) 100.0 $1,218,040(B) 100.0
Cost of sales
occupancy (824,297) (66.2) (798,430) (65.6)
Gross profit 421,464 33.8 419,610 34.4
expenses (384,875) (30.9) (396,706) (32.5)
Operating income 36,589 2.9 22,904 1.9
net (20,049) (1.6) (19,504) (1.6)
other, net 33,304 2.7 37,155 3.0
accounting change 49,844(B) 4.0 40,555(B) 3.3
Income tax expense (19,400) (38.9)(C) (15,800) (39.0)(C)
change 30,444 2.4 24,755 2.0
(net of $8,541 tax) (13,359) (1.0) -- --
Net earnings(D) $17,085 1.4 $24,755 2.0
(A) Nordstrom reports quarterly financial results on a calendar basis. The
Company reports monthly sales according to the 4-5-4 Retail Calendar. Total
sales for first quarter 2002 and 2001 were $1,280.8 million and $1,254.5
million, respectively, on a 4-5-4 Retail Calendar basis.
(B) First-quarter 2002 sales and pre-tax operating loss of the company's
NORDSTROM.com subsidiary, which includes the Internet and catalog business, were
$63.1 million and $0.3 million, respectively, compared to $69.7 and $4.2
million, respectively, for the same period in 2001.
(C) Percent of earnings before income taxes
(D) 2002 earnings exclude non-recurring charges related to Nordstrom.com.
Basic earnings per share:
accounting change $0.23 $0.18
change (0.10) --
Net income $0.13 $0.18
Diluted earnings per share:
accounting change $0.22 $0.18
change (0.10) --
Net income $0.13(A) $0.18
Average number of
Basic 134,702 133,856
Diluted 135,705 133,922
(presented on a 4-5-4 basis)
(compared to prior-year period)
1st Qtr 1st Qtr.
Feb Mar Apr 2002 2001
Total sales 0.6% 1.7% 3.9% 2.1% 8.3%
stores (4.3%) (1.6%) (2.5%) (2.6%) (0.3%)
other (2.8%) 2.4% 5.9% 1.9% (5.4%)
Total (4.1%) (1.1%) (1.6%) (2.1%) (0.8%)
(A) Individual components are rounded and are not intended to sum to the total.
(B) Same-store sales percentages shown are based on the 4-5-4 Retail Calendar.
Same-store sales for the first quarter 2002 and 2001 were (1.5%) and (3.7%),
respectively, on a calendar basis.
CONTACT: investors, Stephanie Allen, +1-206-303-3262, or media, Shasha
Richardson, +1-206-373-3038, both of Nordstrom, Inc.
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SOURCE Nordstrom, Inc.
CONTACT: investors, Stephanie Allen, +1-206-303-3262, or media,
Shasha Richardson, +1-206-373-3038, both of Nordstrom, Inc.
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