Nordstrom Sees Decreased September Comps, Lowers Q3 Expectations

Nordstrom, Inc. saw preliminary sales of $718 million for the five-week period ended Oct. 4, 2008, a decrease of 5.8% compared to sales of $762 million for the five-week period ended Oct. 6, 2007. Same-store sales decreased 9.6%.

Preliminary quarter-to-date sales of $1.28 billion decreased 5.1% compared to sales of $1.34 billion during the same period in 2007. Quarter-to-date same-store sales decreased 8.9%.

Preliminary year-to-date sales of $5.44 billion decreased 4.3% compared to sales of $5.69 billion for the same period in 2007. Year-to-date same-store sales decreased 6.8%.

“The consumer environment has been impacted by events in the financial markets over the past month,” commented Blake Nordstrom, president. “In September we experienced a weakening sales trend that was greater than our earlier expectations. We are monitoring business trends carefully and making the appropriate adjustments. As a result, we believe our inventories, expenses and capital expenditures are well-positioned for current economic conditions. We remain focused on serving our customers and offering a balanced merchandise offering.”

The company’s below-plan sales performance combined with softer consumer credit trends have lowered expected earnings for the quarter. Third quarter same-store sales are now expected to decrease 9-11%, below the forecast of a 4-6% decrease announced at the end of the second quarter. As a result, the company now expects to deliver third quarter earnings per share of 32 cents to 37 cents, which is below its prior outlook of $0.49 to $0.54.

                                        SEPTEMBER SALES RESULTS
                                       (unaudited; $ in millions)
                               Total Sales             Same-store Sales(2)
                               ———–             ——————-
                                            Percent
                        Fiscal    Fiscal   Increase/        Full-line   Rack
                         2008     2007(1) (Decrease)  Total  Stores    Stores
                       —————————— ———————–
    September           $718       $762     (5.8%)    (9.6%)  (14.0%)    2.6%

    Quarter-to-date   $1,276     $1,345     (5.1%)    (8.9%)  (13.4%)    4.8%

    Year-to-date      $5,442     $5,688     (4.3%)    (6.8%)  (10.0%)    5.3%

    Number of stores
     as of September
      Full-line          107        100
      Rack and other      58         56
      Faconnable
       boutiques(3)        –          4
      Total              165        160
                         ===        ===
    Gross square
     footage      21,574,000 20,452,000

    (1)   Total sales results for fiscal 2007 include sales from the company’s
          domestic Faconnable boutiques.  Quarter-to-date and year-to-date
          sales results also include sales from the company’s international
          and wholesale Faconnable business through August 31, 2007.
    (2)   Same-store sales results exclude sales from Faconnable.
    (3)   On August 31, 2007, Nordstrom completed the sale of its
          international and wholesale Faconnable business.  Nordstrom
          completed the sale of its four U.S. Faconnable boutiques on
          October 31, 2007.