SEATTLE, July 10, 2008 /PRNewswire-FirstCall/ -- Nordstrom, Inc. (NYSE: JWN)
today reported preliminary sales of $731 million for the five-week period
ended July 5, 2008, a decrease of 14.1 percent compared to sales of $851
million for the five-week period ended July 7, 2007. Same-store sales
decreased 18.6 percent. The company's June sales results were negatively
impacted by the shift of the Half-Yearly Sale for Women and Kids into May.
The company believes that quarter-to-date results, which combine the
results of May and June 2008, provide the most accurate view of recent sales
trends. Preliminary quarter-to-date sales of $1.45 billion decreased 2.8
percent compared to sales of $1.49 billion during the same period in 2007.
Quarter-to-date same-store sales decreased 5.9 percent.
Preliminary year-to-date sales of $3.33 billion decreased 3.4 percent
compared to sales of $3.44 billion for the same period in 2007. Year-to-date
same-store sales decreased 6.2 percent.
Although second quarter-to-date sales results were consistent with the
company's expectations, the competitive and economic environment remains
challenging. The company experienced higher levels of markdowns than in past
years as it cleared spring merchandise during the Half-Yearly Sale for Women
and Kids in May and the Half-Yearly Sale for Men in June. Due to lower gross
profit margins, the company now expects that earnings for the current quarter
will be at the low end or slightly below its previously announced earnings per
share outlook of 65 to 70 cents.
The company's annual Anniversary Sale starts on July 18th and has
traditionally been enthusiastically received by Nordstrom customers. As a
result, July has historically been the second-largest sales month of the year
and will be an important part of the quarter.
The company will release July sales results on August 7th and second
quarter earnings results on August 14th. In keeping with its normal practice,
the company will update third quarter and full-year outlook upon releasing
second quarter earnings on August 14th.
To hear Nordstrom's pre-recorded June sales message, please dial
800-891-8250 or 402-220-6036. This recording will be available for one week.
JUNE SALES RESULTS
(unaudited; $ in millions)
Total Sales Same-store Sales(2)
Fiscal Fiscal Increase/ Full-line Rack
2008 2007(1) (Decrease) Total Stores Stores
June $731 $851 (14.1%) (18.6%) (23.6%) 5.5%
Quarter-to-date $1,447 $1,489 (2.8%) (5.9%) (9.0%) 6.2%
Year-to-date $3,326 $3,443 (3.4%) (6.2%) (9.0%) 5.3%
Number of stores
Full-line 105 98
Rack and other 54 55
boutiques(3) - 41
Total 159 194
footage 21,139,000 20,191,000
(1) Total sales results for fiscal 2007 include sales from the company's
international and domestic Faconnable boutiques.
(2) Same-store sales results exclude sales from Faconnable.
(3) On October 31, 2007, the company completed the sale of Faconnable.
Future Reporting Dates
Nordstrom's financial release calendar for the next three months is
currently planned as follows:
July Sales Release Thurs., August 7, 2008
Second Quarter Earnings Release Thurs., August 14, 2008
August Sales Release Thurs., September 4, 2008
September Sales Release Thurs., October 9, 2008
Nordstrom, Inc. is one of the nation's leading fashion specialty
retailers, with 159 stores located in 28 states. Founded in 1901 as a shoe
store in Seattle, today Nordstrom operates 105 full-line stores, 50 Nordstrom
Racks, two Jeffrey boutiques, and two clearance stores. In addition,
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 or may suggest "forward-
looking" information (as defined in the Private Securities Litigation Reform
Act of 1995), including the company's expected quarterly results. Such
statements are based upon the current beliefs and expectations of the
company's management and are subject to significant risks and uncertainties.
Actual future results and trends may differ materially from historical results
or current expectations depending upon factors including, but not limited to
the results of the company's Anniversary Sale, the impact of economic and
market conditions and the resultant impact on consumer spending patterns, the
company's ability to respond to the business environment and fashion trends,
the competitive pricing environment within the retail sector, effective
inventory management, the effectiveness of planned advertising, marketing, and
promotional campaigns, the company's compliance with applicable banking and
related laws and regulations impacting the company's ability to extend credit
to its customers, the company's ability to safeguard its brand and reputation,
efficient and proper allocation of the company's capital resources, trends in
personal bankruptcies and bad debt write-offs, changes in interest rates, the
company's ability to control costs, risks related to fluctuations in world
currencies, weather conditions and hazards of nature that affect consumer
traffic and consumers' purchasing patterns, and the timing and amounts of
share repurchases by the company. For additional information regarding these
and other risk factors, please refer to the company's SEC reports, including
its Form 10-K for the fiscal year ended February 2, 2008. The company
undertakes no obligation to update or revise any forward-looking statements to
reflect subsequent events, new information or future circumstances.
SOURCE Nordstrom, Inc.
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