Nordstrom Profits Leap

For the fourth quarter, Nordstrom earnings totaled $140 million, or $1 a share, up from the $104 million, or 74 cents a share, in the same quarter last year. The fourth quarter results excluded a noncash expense of $4.7 million, or three cents a share, without which earnings would have totaled $144.7 million, or $1.03 a share. For the year, the company posted a profit of $393.5 million, or $2.77 a share, up from $242.8 million and $1.76 a share in the previous year. The higher profits came on fourth quarter sales that increased 9.4% to a record $2.1 billion, compared with sales of $1.9 billion in the fourth quarter of 2003. For the full year, sales climbed 10.6% to $7.1 billion. Same store sales grew 7.2% for the quarter and 8.5% for the year.

During fiscal 2004 Nordstrom opened two full-line stores, one in Charlotte, NC and the other in Miami, FL, increasing its gross square footage for the year approximately 1.4% to nearly 19.4 million sf. The company plans to open one store at Phipps Plaza in Atlanta, GA during the first quarter and to relocate a Rack store in Portland, OR. During the question-and-answer session of Tuesday's conference call, president Blake Nordstrom said that its Rack division "did a super job this year." The Rack "had the best performance in its history and far exceeded its peers in the discount off-price arena," the Nordstrom president said. He also mentioned that the company's three-year capital plan calls for spending about $90 million a year in remodeling, or about six stores per year.

Nordstrom operates 150 US stores in 27 states, including 94 full-line stores, 49 Nordstrom Racks, five US Faconnable boutiques, one freestanding shoe store and one clearance store. It also operates 31 international Faconnable boutiques, primarily in Europe.