Nordstrom Earnings Climb 153%

Nordstrom reported net earnings of $68.7 million, or $0.48 per diluted share, for the first quarter of 2004, which ended May 1, 2004. For the same period last year, net earnings and earnings per diluted share were $27.2 million and $0.20, respectively. 2004 results include $20.8 million or $0.08 per share of interest expense related to retirement of debt during the quarter.

Total sales for the first quarter of 2004 increased 16.6 percent, to $1.5 billion, compared to sales of $1.3 billion in the same period last year. First quarter 2004 same-store sales increased 13.2 percent.

FIRST QUARTER HIGHLIGHTS

Earnings increased 153 percent in the first quarter compared to the same quarter last year, ahead of expectations and reflecting ongoing fundamental improvement in performance. The company continues to deliver operating improvements in all aspects of its business including merchandising, inventory productivity and expense management.

  -- Same-store sales increased 13.2 percent, ahead of the company's planned
     four to six percent increase.
  -- Gross profit improved 320 basis points, driven by strong sell through
     and lower markdowns compared to the prior year.
  -- Selling, general and administrative expenses as a percent to sales
     decreased 180 basis points primarily due to on-plan expenses leveraged
     by better than expected sales.

  GAAP SALES PERFORMANCE

The additional information provided in this section is to comply with the Securities and Exchange Commission's Regulation G. The company converted to a 4-5-4 Retail Calendar at the beginning of 2003. The first quarter of 2003 includes one more day than the first quarter of 2004. The company believes that adjusting for this difference provides a more comparable basis from which to evaluate sales performance. The following reconciliation bridges the quarter-to-date 2003 GAAP sales to the 4-5-4 comparable sales.

                                                         % Change  % Change
  Sales Reconciliation ($M)                       Dollar    Total     Comp
                            QTD 2003  QTD 2004   Increase   Sales    Sales
  Number of Days GAAP             92        91
  GAAP Sales                $1,335.5  $1,535.5    $200.0    15.0%    11.5%
  Less Feb. 1, 2003
   sales                      ($18.2)       --
  Reported 4-5-4
   sales                    $1,317.3  $1,535.5    $218.2    16.6%    13.2%
  4-5-4 Adjusted Days             91        91


  EXPANSION UPDATE

During the first quarter Nordstrom opened one full-line store at SouthPark Mall in Charlotte, North Carolina. The company plans to open one additional store this year; a full-line store at Dadeland Mall in Miami scheduled to open later this fall. Gross square footage for the year is expected to increase approximately 2 percent, from 19,138,000 to 19,439,000.

  2004 outlook

  The company is providing the following 2004 forecasts:

                              2nd Quarter 2004           Full-Year 2004

   Comp-store Sales         4% - 6% increase           4% -6% increase

   Gross Profit (%)         Significant improvement    100-130 basis point

   increase

   Selling, General and

    Administrative

    Expense (%)             Moderate improvement       100-130 basis point

   decrease

   Service Charge Income    $2-$4 million increase     $7-$9 million

   increase

   Interest Expense         $11-$13 million decrease   $11-$13 million

   decrease

   Effective Tax Rate       39%                        39%

   Earnings per Share       $0.70 - $0.74              $2.42 - $2.46

   Diluted Shares

    Outstanding             Approx. 143 million        Approx. 143 million

   Prior Year Diluted EPS   $0.48                      $1.76