Nordstrom, Inc. reported sales of $762.2 million for the month of
September, an increase of 4.1% compared to sales of $732.5 million a
year ago. Same-store sales increased 3.2%.

Quarter-to-date sales of $1.34 billion increased 7.6% compared to sales
of $1.25 billion during the same period in 2006. Quarter-to-date
same-store sales increased 4.6%.

UPDATED THIRD QUARTER OUTLOOK

“We
are pleased to report positive same store sales during a month that
appeared to be challenging for our industry. While we did experience
positive same store sales growth, we did not achieve our plan. In
addition, we entered the quarter with inventory levels above our plan
and our below-plan sales performance put additional pressure on
inventory levels. We are taking immediate action to bring inventory
levels in line, which will negatively impact merchandise margins for
the remainder of the year,” commented Blake Nordstrom, President of
Nordstrom, Inc.

The company's below plan sales performance
combined with its higher inventory position will lower expected
earnings. As a result, the company now expects to deliver third quarter
earnings per share of 50 cents to 53 cents, which is below its prior
outlook of 61 cents to 64 cents. Additionally, third quarter same-store
sales are now expected to increase two to four percent, below the four
to five percent range announced at the end of the second quarter. In
keeping with its normal practice, the company will update fourth
quarter and full year guidance on November 19 upon releasing third
quarter earnings.

“We remain committed to our long-term strategy
and feel we are in a strong competitive and financial position,”
continued Nordstrom. “We believe that we can continue to gain market
share by offering the best fashion available, increasing our presence
where our customers shop and improving the shopping experience our
customers have with us. Regardless of whether our customers choose to
shop with us online or in stores, we are working to make their
experience with Nordstrom a more convenient and seamless one. Our
current schedule of new store openings presents opportunities to reach
many new customers in great retail destinations and desirable markets,
some of which are brand new for our company. The initial results from
our newest full-line stores in Natick, Mass., and Novi, Mich., and our
new Nordstrom Rack in Tukwila, Wash., which all opened in September,
are particularly encouraging. While it's early, these stores have
generated a great response from customers and experienced strong
results, beating our preliminary expectations.”

Preliminary year-to-date sales
of $5.69 billion increased 7.2% compared to sales of $5.31 billion
during the same period in 2006. Year-to-date same-store sales increased
6.8%.