SEATTLE (May 18, 2009)—Nordstrom, Inc. (JWN) experienced a drop in net earnings and net sales during the first quarter, ended May 2. Net earnings reached $81 million, or $0.37 per diluted share, compared to $119 million, or $0.54 per diluted share accumulated during the year-ago quarter. However, the results did include a benefit of approximately $12 million, or $0.06 per diluted share, related to the closure of the company’s 2007 federal tax return audit. Excluding this benefit, 2009 first quarter net earnings were $69 million, or $0.31 per share.

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Net sales in the first quarter dropped 9.2 percent to $1.71 billion versus sales of $1.88 billion during the same period in fiscal 2008. First quarter same-store sales were down 13.2 percent compared with the same period in fiscal 2008.

In the first quarter, overall business trends were consistent with the company’s business plans. Full-line same-store sales decreased 16.5 percent. Sales for Nordstrom Direct were flat. Top-performing merchandise categories included dresses, junior women’s apparel and cosmetics, while the South and Mid-Atlantic regions were the top-performing geographic areas. Nordstrom Rack was a shining star in the company’s quarter as it outperformed most of its off-price competitors with a same-store sales increase of 1.2 percent.

During the second quarter, Nordstrom relocated one full-line store in Utah, and opened two additional full-line stores in New Jersey and Massachusetts. The company also bowed five Nordstrom Rack locations in California, New Jersey, Texas, Utah and Illinois.
For the 2009 fiscal year, Nordstrom expects earnings per diluted share in the range of $1.25 to $1.50, increased from the previous range of $1.10 to $1.40. The company’s revised expectations for fiscal 2009 also indicate a 10 percent to 15 percent dip in same-store sales and 218 million outstanding diluted shares.

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