Nordstrom, Inc. reported net earnings of $27.2 million, or $0.20 per diluted share, for the first quarter of 2003, which ended May 3, 2003. For the same period last year, net loss and loss per diluted share were $24.6 million and $0.18, respectively. Excluding $55.0 million (net of tax) in non-recurring and impairment charges related to the cumulative effect of an accounting change and the purchase of a minority interest in Nordstrom.com and associated reintegration costs(1), first quarter 2002 net earnings and earnings per diluted share were $30.4 million and $0.22, respectively. Below plan sales and higher than expected markdowns drove the 10.8 percent decrease in earnings for the quarter, excluding non-recurring and impairment charges.

Net sales for the first quarter of 2003 increased 3.5 percent, to $1.3 billion, compared to sales of $1.2 billion in the same period last year. First quarter 2003 same-store sales decreased 1.4 percent.

“Despite the challenging retail environment, we are encouraged by our relative sales performance this past quarter and are working diligently to continue to build market share,” commented President Blake Nordstrom. “We remain focused on our core initiatives of achieving sustained same-store sales increases through service and merchandise, integrating new technology and reducing expenses, as these are the key drivers of future performance improvement.”

During the first quarter of 2003 Nordstrom opened one full-line store, in Houston, TX. For the remainder of the year ending January 31, 2004, the company plans to open three full-line stores, in Austin, Texas; Richmond, Va.; and Wellington Green, Fla. Two additional Rack stores are also planned. Gross square footage for the year is expected to increase approximately 4.0 percent, from 18,428,000 to 19,089,000.

GAAP Sales Performance

The additional information provided in this section is to comply with the Securities and Exchange Commission’s newly issued Regulation G. The company converted to a 4-5-4 Retail Calendar at the beginning of 2003. Sales performance numbers included in this press release have been calculated on a comparative 4-5-4 basis. The company believes that adjusting out these three additional days provides a more comparable basis (4-5-4 vs 4-5-4) from which to evaluate sales performance in the first quarter.

     Sales            1Q03          1Q02        Dollar      Total      Comp
     Reconciliation   4-5-4      Gregorian
     ($M)            calendar     calendar     Increase     Sales      Sales

     Number of
      Days Reported
      GAAP              92             89
     Reported
      GAAP Sales  $1,343.5       $1,245.8      $97.7         7.8%       2.7%
     Less
      Feb 1-2,
      2002 sales                  ($31.0)
     Plus
      May 1-4,
      2002 sales                    $65.6
      Less Feb 1,
       2003 sales  ($18.2)
      Reported
       4-5-4
       sales      $1,325.3       $1,280.4      $44.9         3.5%     (1.4%)
      4-5-4
      Adjusted Days     91             91

     2003 Outlook
     The Company is providing the following 2003 forecasts:

                                        2nd Quarter 2003       Full-Year 2003

     Comp-store Sales                           Flat                   Flat
     Gross Profit (%)                           Flat                   Flat
     Selling, General and
      Administrative Expense (%)     Slightly higher                   Flat
     Service Charge Income                      Flat   Increase $6-10 million
     Interest Expense                           Flat                   Flat
     Effective Tax Rate                          39%                    39%
     Earnings per Share                $0.35 - $0.40          $1.19 - $1.23
     Square footage growth                                               4%

                                 NORDSTROM, INC.

                CONSOLIDATED STATEMENTS OF EARNINGS - 1st Quarter

    (unaudited;amounts in thousands, except per share data and percentages)


                          Quarter      % of sales    Quarter       % of sales

                           ended       (except as     ended        (except as

                          5/3/03       indicated)    4/30/02       indicated)


    Net sales           $1,343,539         100.0   $1,245,761         100.0


    Cost of sales and

     related buying

     & occupancy         (888,458)        (66.1)    (823,088)        (66.1)


    Gross profit           455,081          33.9      422,673          33.9


    Selling, general

     and administrative

     expenses            (426,030)        (31.7)    (386,084)        (31.0)


    Operating income        29,051           2.2       36,589           2.9


    Interest expense,

     net                  (20,228)         (1.5)     (20,049)         (1.6)


    Minority interest

     purchase                   --            --     (42,047)         (3.4)

    Service charge income

    and other, net          35,632           2.6       33,304           2.7


    Earnings before

     income taxes and cumulative

    effect of accounting

     change                 44,455           3.3        7,797           0.6


    Income tax expense    (17,300)     (38.9)(2)     (19,010)    (243.8)(2)

    Earnings (loss)

     before cumulative

     effect of

    accounting change       27,155           2.0     (11,213)         (0.9)

    Cumulative effect

     of accounting

     change (net of tax)        --            --     (13,359)         (1.1)


    Net earnings (loss)    $27,155           2.0    $(24,572)         (2.0)