þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Washington
|
|
91-0515058
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State or other jurisdiction of
incorporation or organization
|
|
(I.R.S. Employer
Identification No.)
|
|
|
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1617 Sixth Avenue, Seattle, Washington
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|
98101
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
|
|
Name of each exchange on which registered
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Common stock, without par value
|
|
New York Stock Exchange
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Large accelerated filer
þ
|
Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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Emerging growth company
¨
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TABLE OF CONTENTS
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Page
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Item 15.
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•
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timely and effective implementation of evolving our business model and successful execution of our customer strategy to provide a differentiated and seamless experience across all Nordstrom channels,
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•
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our ability to execute and manage the costs of our evolving business model, including the execution of new supply chain capabilities and enhancement of existing ones, development of applications for electronic devices, improvement of customer-facing technologies, timely delivery of products purchased digitally, enhancement of inventory management systems, more fluid inventory availability between our digital channels and retail stores through our local market strategy, and greater consistency in marketing strategies,
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•
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our ability to respond to the business and retail environment, as well as fashion trends and consumer preferences, including changing expectations of service and experience in stores and online,
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•
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our ability to properly balance our investments in existing and new store locations, technology and supply chain facilities, especially our investments in our Nordstrom Men’s Store NYC and Nordstrom NYC and our Los Angeles market integration,
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•
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successful execution of our information technology strategy, including engagement with third-party service providers,
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•
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our ability to effectively utilize internal and third-party data in strategic planning and decision making,
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•
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our ability to maintain or expand our presence, including timely completion of construction associated with new, relocated and remodeled stores, and Supply Chain Network facilities, all of which may be impacted by third parties, consumer demand and other natural or man-made disruptions,
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•
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efficient and proper allocation of our capital resources,
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•
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effective inventory management processes and systems, fulfillment and supply chain processes and systems, disruptions in our supply chain and our ability to control costs,
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•
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the impact of any systems or network failures, cybersecurity and/or security breaches, including any security breach of our systems or those of a third-party provider that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information or compliance with information security and privacy laws and regulations in the event of such an incident,
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•
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our ability to safeguard our reputation and maintain relationships with our vendors and third-party service providers,
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•
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our ability to maintain relationships with and motivate our employees and to effectively attract, develop and retain our future leaders,
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•
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our ability to realize the expected benefits, respond to potential risks and appropriately manage costs associated with our program agreement with TD Bank, N.A. (“TD”),
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•
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the effectiveness of planned advertising, marketing and promotional campaigns in the highly competitive and promotional retail industry,
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•
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market fluctuations, increases in operating costs, exit costs and overall liabilities and losses associated with owning and leasing real estate,
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•
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potential goodwill impairment charges, future impairment charges and fluctuations in the fair values of reporting units or of assets in the event projected financial results are not achieved within expected time frames,
|
•
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compliance with debt and operating covenants, availability and cost of credit, changes in our credit rating and changes in interest rates,
|
•
|
the
timing, price, manner and amounts
of future share repurchases by us, if any, or any share issuances by us,
|
•
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the impact of the seasonal nature of our business and cyclical customer spending,
|
•
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the impact of economic and market conditions and the resultant impact on consumer spending and credit patterns,
|
•
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the impact of economic, environmental or political conditions in the U.S. and countries where our third-party vendors operate,
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•
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weather conditions, natural disasters, health hazards, national security or other market and supply chain disruptions, including the effects of tariffs, or the prospects of these events and the resulting impact on consumer spending patterns or information technology systems and communications,
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•
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our compliance with applicable domestic and international laws, regulations and ethical standards, including those related to employment and tax, information security and privacy, consumer credit and the outcome of any claims and litigation and resolution of such matters,
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•
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the impact of the current regulatory environment and financial system, health care and tax reforms,
|
•
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the impact of changes in accounting rules and regulations, changes in our interpretation of the rules or regulations, or changes in underlying assumptions, estimates or judgments,
|
•
|
the impact of claims, litigation and regulatory investigations, including those related to information security, privacy and consumer credit.
|
•
|
115
Nordstrom-branded full-line stores in the U.S.
|
•
|
six
full-line and
six
Rack stores in Canada
|
•
|
Full-Price Nordstrom.com website and mobile application
|
•
|
TrunkClub.com website and
six
Trunk Club clubhouses
|
•
|
three
Jeffrey boutiques
|
•
|
three
Nordstrom Local neighborhood hubs (“Nordstrom Local”)
|
•
|
239
Off-Price Nordstrom Rack stores in the U.S.
|
•
|
Off-Price Nordstromrack.com/HauteLook website and mobile application
|
•
|
two
Last Chance clearance stores
|
•
|
fulfillment centers that process and ship orders to our customers, located in Cedar Rapids, Iowa; Elizabethtown, Pennsylvania; and San Bernardino, California,
|
•
|
distribution centers that process and ship merchandise to our stores and other facilities and
|
•
|
future Omni-channel centers that both fulfill customer orders and ship merchandise to our stores. These will open in 2019 and include large-scale centers and smaller local hubs (Local Omni-channel Hub).
|
Nordstrom Investor Relations
|
1700 Seventh Avenue, Suite 1500
|
Seattle, Washington 98101
|
(206) 303-3200
|
invrelations@nordstrom.com
|
|
|
Number of stores
|
|
|
|||||
|
|
Full-Price
1
|
|
|
Off-Price
2
|
|
|
% of total store
square footage |
|
Leased stores on leased land
|
|
43
|
|
|
239
|
|
|
44
|
%
|
Owned stores on leased land
|
|
63
|
|
|
—
|
|
|
37
|
%
|
Owned stores on owned land
|
|
32
|
|
|
1
|
|
|
18
|
%
|
Partly owned and partly leased store
|
|
1
|
|
|
—
|
|
|
1
|
%
|
Total
|
|
139
|
|
|
240
|
|
|
100
|
%
|
|
|
Store count
|
|
Square footage (000’s)
|
||||||||||||||
Fiscal year
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
Total, beginning of year
|
|
366
|
|
|
349
|
|
|
323
|
|
|
30,218
|
|
|
29,792
|
|
|
28,610
|
|
Store openings
1
:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Full-Price
2
|
|
10
|
|
|
2
|
|
|
5
|
|
|
277
|
|
|
184
|
|
|
629
|
|
Off-Price
3
|
|
6
|
|
|
17
|
|
|
22
|
|
|
170
|
|
|
559
|
|
|
702
|
|
Stores closed
|
|
(3
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(280
|
)
|
|
(317
|
)
|
|
(149
|
)
|
Total, end of year
|
|
379
|
|
|
366
|
|
|
349
|
|
|
30,385
|
|
|
30,218
|
|
|
29,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Relocations and other
1
|
|
1
|
|
|
3
|
|
|
3
|
|
|
(5
|
)
|
|
33
|
|
|
(9
|
)
|
Business
|
|
Full-Price
1
|
|
Off-Price
2
|
|
Total
|
|||||||||
|
|
Count
|
|
Square Footage
(000’s)
|
|
|
Count
|
|
Square Footage
(000’s)
|
|
|
Count
|
|
Square Footage
(000’s)
|
|
U.S.
|
|
|
|
|
|
|
|
|
|
||||||
Alabama
|
|
—
|
|
—
|
|
|
1
|
|
35
|
|
|
1
|
|
35
|
|
Alaska
|
|
1
|
|
97
|
|
|
1
|
|
35
|
|
|
2
|
|
132
|
|
Arizona
|
|
2
|
|
384
|
|
|
9
|
|
313
|
|
|
11
|
|
697
|
|
California
|
|
35
|
|
5,225
|
|
|
53
|
|
1,974
|
|
|
88
|
|
7,199
|
|
Colorado
|
|
3
|
|
559
|
|
|
6
|
|
213
|
|
|
9
|
|
772
|
|
Connecticut
|
|
1
|
|
189
|
|
|
1
|
|
36
|
|
|
2
|
|
225
|
|
Delaware
|
|
1
|
|
127
|
|
|
1
|
|
32
|
|
|
2
|
|
159
|
|
Florida
|
|
9
|
|
1,389
|
|
|
16
|
|
545
|
|
|
25
|
|
1,934
|
|
Georgia
|
|
3
|
|
395
|
|
|
4
|
|
153
|
|
|
7
|
|
548
|
|
Hawaii
|
|
1
|
|
195
|
|
|
2
|
|
78
|
|
|
3
|
|
273
|
|
Idaho
|
|
—
|
|
—
|
|
|
1
|
|
37
|
|
|
1
|
|
37
|
|
Illinois
|
|
5
|
|
973
|
|
|
16
|
|
594
|
|
|
21
|
|
1,567
|
|
Indiana
|
|
1
|
|
134
|
|
|
2
|
|
60
|
|
|
3
|
|
194
|
|
Iowa
|
|
—
|
|
—
|
|
|
1
|
|
35
|
|
|
1
|
|
35
|
|
Kansas
|
|
1
|
|
219
|
|
|
1
|
|
35
|
|
|
2
|
|
254
|
|
Kentucky
|
|
—
|
|
—
|
|
|
1
|
|
33
|
|
|
1
|
|
33
|
|
Louisiana
|
|
—
|
|
—
|
|
|
3
|
|
90
|
|
|
3
|
|
90
|
|
Maine
|
|
—
|
|
—
|
|
|
1
|
|
30
|
|
|
1
|
|
30
|
|
Maryland
|
|
4
|
|
765
|
|
|
5
|
|
186
|
|
|
9
|
|
951
|
|
Massachusetts
|
|
5
|
|
604
|
|
|
7
|
|
266
|
|
|
12
|
|
870
|
|
Michigan
|
|
3
|
|
552
|
|
|
5
|
|
178
|
|
|
8
|
|
730
|
|
Minnesota
|
|
2
|
|
380
|
|
|
5
|
|
173
|
|
|
7
|
|
553
|
|
Missouri
|
|
2
|
|
342
|
|
|
2
|
|
69
|
|
|
4
|
|
411
|
|
Nevada
|
|
1
|
|
207
|
|
|
3
|
|
101
|
|
|
4
|
|
308
|
|
New Jersey
|
|
5
|
|
991
|
|
|
8
|
|
284
|
|
|
13
|
|
1,275
|
|
New Mexico
|
|
—
|
|
—
|
|
|
1
|
|
34
|
|
|
1
|
|
34
|
|
New York
|
|
5
|
|
547
|
|
|
12
|
|
433
|
|
|
17
|
|
980
|
|
North Carolina
|
|
2
|
|
300
|
|
|
2
|
|
74
|
|
|
4
|
|
374
|
|
Ohio
|
|
3
|
|
549
|
|
|
6
|
|
224
|
|
|
9
|
|
773
|
|
Oklahoma
|
|
—
|
|
—
|
|
|
2
|
|
67
|
|
|
2
|
|
67
|
|
Oregon
|
|
3
|
|
484
|
|
|
6
|
|
218
|
|
|
9
|
|
702
|
|
Pennsylvania
|
|
2
|
|
381
|
|
|
7
|
|
240
|
|
|
9
|
|
621
|
|
Puerto Rico
|
|
1
|
|
143
|
|
|
—
|
|
—
|
|
|
1
|
|
143
|
|
Rhode Island
|
|
—
|
|
—
|
|
|
1
|
|
38
|
|
|
1
|
|
38
|
|
South Carolina
|
|
—
|
|
—
|
|
|
3
|
|
101
|
|
|
3
|
|
101
|
|
Tennessee
|
|
1
|
|
145
|
|
|
2
|
|
69
|
|
|
3
|
|
214
|
|
Texas
|
|
10
|
|
1,580
|
|
|
18
|
|
613
|
|
|
28
|
|
2,193
|
|
Utah
|
|
2
|
|
277
|
|
|
4
|
|
126
|
|
|
6
|
|
403
|
|
Virginia
|
|
4
|
|
746
|
|
|
7
|
|
268
|
|
|
11
|
|
1,014
|
|
Washington
|
|
7
|
|
1,392
|
|
|
9
|
|
354
|
|
|
16
|
|
1,746
|
|
Washington D.C.
|
|
1
|
|
8
|
|
|
3
|
|
107
|
|
|
4
|
|
115
|
|
Wisconsin
|
|
1
|
|
150
|
|
|
2
|
|
67
|
|
|
3
|
|
217
|
|
Canada
|
|
|
|
|
|
|
|
|
|
||||||
Alberta
|
|
3
|
|
208
|
|
|
—
|
|
—
|
|
|
3
|
|
208
|
|
British Columbia
|
|
1
|
|
231
|
|
|
—
|
|
—
|
|
|
1
|
|
231
|
|
Ontario
|
|
8
|
|
899
|
|
|
—
|
|
—
|
|
|
8
|
|
899
|
|
Total
|
|
139
|
|
21,767
|
|
|
240
|
|
8,618
|
|
|
379
|
|
30,385
|
|
•
|
six owned distribution centers (Portland, Oregon; Dubuque, Iowa; Ontario, California; Newark, California; Upper Marlboro, Maryland and Gainesville, Florida),
|
•
|
two owned fulfillment centers (Cedar Rapids, Iowa and Elizabethtown, Pennsylvania),
|
•
|
one leased fulfillment center (San Bernardino, California),
|
•
|
four leased office facilities (Chicago, Illinois; Centennial, Colorado; Los Angeles, California and New York City, New York) and
|
•
|
one leased Omni-channel center (Riverside, California) and
|
•
|
one leased Local Omni-channel Hub (Torrance, California)
|
•
|
two full-line stores in the U.S.
|
•
|
five Nordstrom Rack stores in the U.S.
|
|
Total Number
of Shares
Purchased
|
|
|
Average
Price Paid
Per Share
|
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
|
Approximate Dollar Value
of Shares that May
Yet Be Purchased Under
the Plans or Programs
|
|
||
November 2018
(November 4, 2018 to December 1, 2018) |
2.0
|
|
|
|
$52.78
|
|
|
2.0
|
|
|
|
$1,336
|
|
December 2018
(December 2, 2018 to January 5, 2019) |
4.3
|
|
|
|
$47.15
|
|
|
4.3
|
|
|
|
$1,133
|
|
January 2019
(January 6, 2019 to February 2, 2019) |
5.1
|
|
|
|
$46.82
|
|
|
5.1
|
|
|
|
$893
|
|
Total
|
11.4
|
|
|
|
$47.97
|
|
|
11.4
|
|
|
|
End of fiscal year
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
|
2018
|
|
Nordstrom common stock
|
100
|
|
|
136
|
|
|
96
|
|
|
87
|
|
|
100
|
|
|
97
|
|
S&P Retail
|
100
|
|
|
123
|
|
|
143
|
|
|
169
|
|
|
239
|
|
|
253
|
|
S&P 500
|
100
|
|
|
117
|
|
|
115
|
|
|
139
|
|
|
171
|
|
|
171
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||||
Earnings Results
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$15,480
|
|
|
|
$15,137
|
|
|
|
$14,498
|
|
|
|
$14,095
|
|
|
|
$13,110
|
|
Credit card revenues, net
1
|
380
|
|
|
341
|
|
|
259
|
|
|
342
|
|
|
396
|
|
|||||
Gross profit
|
5,325
|
|
|
5,247
|
|
|
5,058
|
|
|
4,927
|
|
|
4,704
|
|
|||||
Selling, general and administrative (“SG&A”) expenses
2
|
(4,868
|
)
|
|
(4,662
|
)
|
|
(4,315
|
)
|
|
(4,168
|
)
|
|
(3,777
|
)
|
|||||
Earnings before interest and income taxes (“EBIT”)
|
837
|
|
|
926
|
|
|
805
|
|
|
1,101
|
|
|
1,323
|
|
|||||
Net earnings
|
564
|
|
|
437
|
|
|
354
|
|
|
600
|
|
|
720
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance Sheet and Cash Flow Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$957
|
|
|
|
$1,181
|
|
|
|
$1,007
|
|
|
|
$595
|
|
|
|
$827
|
|
Merchandise inventories
|
1,978
|
|
|
2,027
|
|
|
1,896
|
|
|
1,945
|
|
|
1,733
|
|
|||||
Land, property and equipment, net
|
3,921
|
|
|
3,939
|
|
|
3,897
|
|
|
3,735
|
|
|
3,340
|
|
|||||
Total assets
1
|
7,886
|
|
|
8,115
|
|
|
7,858
|
|
|
7,698
|
|
|
9,245
|
|
|||||
Total long-term debt
1
|
2,685
|
|
|
2,737
|
|
|
2,774
|
|
|
2,805
|
|
|
3,131
|
|
|||||
Net cash provided by operating activities
1
|
1,296
|
|
|
1,400
|
|
|
1,658
|
|
|
2,470
|
|
|
1,243
|
|
|||||
Capital expenditures
|
654
|
|
|
731
|
|
|
846
|
|
|
1,082
|
|
|
861
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Performance Metrics
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales increase
|
2.3
|
%
|
|
4.4
|
%
|
|
2.9
|
%
|
|
7.5
|
%
|
|
7.8
|
%
|
|||||
Comparable sales increase (decrease)
3
|
1.7
|
%
|
|
0.8
|
%
|
|
(0.4
|
%)
|
|
2.7
|
%
|
|
4.0
|
%
|
|||||
Digital sales as % of net sales
4
|
30.0
|
%
|
|
27.0
|
%
|
|
24.0
|
%
|
|
21.0
|
%
|
|
18.0
|
%
|
|||||
Gross profit % of net sales
|
34.4
|
%
|
|
34.7
|
%
|
|
34.9
|
%
|
|
35.0
|
%
|
|
35.9
|
%
|
|||||
SG&A % of net sales
2
|
31.5
|
%
|
|
30.8
|
%
|
|
29.8
|
%
|
|
29.6
|
%
|
|
28.8
|
%
|
|||||
EBIT % of net sales
2
|
5.4
|
%
|
|
6.1
|
%
|
|
5.6
|
%
|
|
7.8
|
%
|
|
10.1
|
%
|
|||||
Capital expenditures % of net sales
|
4.2
|
%
|
|
4.8
|
%
|
|
5.8
|
%
|
|
7.7
|
%
|
|
6.6
|
%
|
|||||
Return on assets
|
6.8
|
%
|
|
5.4
|
%
|
|
4.5
|
%
|
|
6.6
|
%
|
|
8.1
|
%
|
|||||
Adjusted return on invested capital (“Adjusted ROIC”)
5
|
12.0
|
%
|
|
9.7
|
%
|
|
8.4
|
%
|
|
10.7
|
%
|
|
12.6
|
%
|
|||||
Inventory turnover rate
|
4.70
|
|
|
4.67
|
|
|
4.53
|
|
|
4.54
|
|
|
4.67
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Share Information
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per diluted share
2,6
|
|
$3.32
|
|
|
|
$2.59
|
|
|
|
$2.02
|
|
|
|
$3.15
|
|
|
|
$3.72
|
|
Dividends declared per share
1
|
1.48
|
|
|
1.48
|
|
|
1.48
|
|
|
6.33
|
|
|
1.32
|
|
•
|
We continue to see positive customer trends. We had over 35 million customers, an increase of 6% from last year. One-third of our customers shopped across our multiple channels, resulting in incremental customer spend.
|
•
|
Our early investments to build a robust digital business gives us a competitive advantage. Digital sales increased
16%
and made up
30%
of net sales. Additionally, Nordstrom.com has achieved scale, with the profitability of Full-Price digital sales at parity with store sales.
|
•
|
Generational investments continued to scale, contributing approximately $2 billion in sales and improvement in profitability. Nordstromrack.com/HauteLook became our fastest business to reach $1 billion in sales. Trunk Club delivered sales growth of 35%. We opened our Men’s Store in New York City and furthered our expansion into Canada with the introduction of six Nordstrom Rack stores.
|
•
|
Comparable Sales
–
sales from stores that have been open at least one full year at the beginning of the year. In 2019, we expect net sales growth to approximate comparable sales. As a result, we will only report net sales growth
|
•
|
Comparable sales include digital sales and actual returns. Our estimate for sales return allowance is not included in the comparable sales calculations.
|
•
|
Due to the 53rd week in 2017, our 2018 comparable sales are reported on a like-for-like basis with no impact from calendar shifts or the new Revenue Standard (see
Note 1: Nature of Operations and Summary of Significant Accounting Policies
in
Item 8
).
|
•
|
Digital Sales –
online sales and digitally assisted store sales which include Buy Online, Pick Up in Store (“BOPUS”), Ship to Store, Reserve Online, Try in Store (Store Reserve) and Style Board, a digital selling tool
|
•
|
Gross Profit – net sales less cost of sales and related buying and occupancy costs
|
•
|
Inventory Turnover Rate – trailing 4-quarter cost of sales and related buying and occupancy costs divided by the trailing 4-quarter average inventory
|
•
|
Full-Price –
Nordstrom U.S. full-line stores, Nordstrom.com, Canada, Trunk Club, Jeffrey and Nordstrom Local
|
•
|
Off-Price –
Nordstrom U.S. Rack stores, Nordstromrack.com/HauteLook and Last Chance clearance stores
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Net sales by business:
|
|
|
|
|
|
||||||
Full-Price
|
10,299
|
|
|
10,452
|
|
|
10,259
|
|
|||
Off-Price
|
5,181
|
|
|
4,956
|
|
|
4,509
|
|
|||
Other
|
—
|
|
|
(271
|
)
|
|
(270
|
)
|
|||
Total net sales
|
|
$15,480
|
|
|
|
$15,137
|
|
|
|
$14,498
|
|
|
|
|
|
|
|
||||||
Net sales increase
|
2.3
|
%
|
|
4.4
|
%
|
|
2.9
|
%
|
|||
|
|
|
|
|
|
||||||
Comparable sales increase (decrease) by business:
|
|
|
|
|
|
||||||
Full-Price
|
0.9
|
%
|
|
0.1
|
%
|
|
(2.2
|
%)
|
|||
Off-Price
|
3.5
|
%
|
|
2.5
|
%
|
|
4.5
|
%
|
|||
Total Company
|
1.7
|
%
|
|
0.8
|
%
|
|
(0.4
|
%)
|
|||
|
|
|
|
|
|
||||||
Digital sales as % of total net sales
|
30
|
%
|
|
27
|
%
|
|
24
|
%
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Gross profit
|
|
$5,325
|
|
|
|
$5,247
|
|
|
|
$5,058
|
|
Gross profit as a % of net sales
|
34.4
|
%
|
|
34.7
|
%
|
|
34.9
|
%
|
|||
Inventory turnover rate
|
4.70
|
|
|
4.67
|
|
|
4.53
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Selling, general and administrative expenses
|
|
$4,868
|
|
|
|
$4,662
|
|
|
|
$4,315
|
|
Selling, general and administrative expenses as a % of net sales
|
31.5
|
%
|
|
30.8
|
%
|
|
29.8
|
%
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Earnings before interest and income taxes
|
|
$837
|
|
|
|
$926
|
|
|
|
$805
|
|
Earnings before interest and income taxes as a % of net sales
|
5.4
|
%
|
|
6.1
|
%
|
|
5.6
|
%
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Interest on long-term debt and short-term borrowings
|
|
$146
|
|
|
|
$168
|
|
|
|
$147
|
|
Less:
|
|
|
|
|
|
||||||
Interest income
|
(15
|
)
|
|
(5
|
)
|
|
(1
|
)
|
|||
Capitalized interest
|
(27
|
)
|
|
(27
|
)
|
|
(25
|
)
|
|||
Interest expense, net
|
|
$104
|
|
|
|
$136
|
|
|
|
$121
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Income tax expense
|
|
$169
|
|
|
|
$353
|
|
|
|
$330
|
|
Effective tax rate
|
23.1
|
%
|
|
44.7
|
%
|
|
48.2
|
%
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
Statutory rate
1
|
21.0
|
%
|
|
33.7
|
%
|
|
35.0
|
%
|
Tax Act impact
|
(0.1
|
%)
|
|
6.1
|
%
|
|
—
|
|
Goodwill impairment
|
—
|
|
|
—
|
|
|
10.1
|
%
|
State and local income taxes, net of federal income taxes
|
5.8
|
%
|
|
4.5
|
%
|
|
5.1
|
%
|
Federal credits
|
(1.5
|
%)
|
|
(0.7
|
%)
|
|
(0.6
|
%)
|
Valuation allowance release
|
(1.2
|
%)
|
|
—
|
|
|
—
|
|
Other, net
|
(0.9
|
%)
|
|
1.1
|
%
|
|
(1.4
|
%)
|
Effective tax rate
|
23.1
|
%
|
|
44.7
|
%
|
|
48.2
|
%
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Basic
|
|
$3.37
|
|
|
|
$2.62
|
|
|
|
$2.05
|
|
Diluted
|
|
$3.32
|
|
|
|
$2.59
|
|
|
|
$2.02
|
|
Net sales growth
|
1 percent to 2 percent
|
Credit card revenues, net
|
Mid to high single-digit growth
|
EBIT
|
$915 to $970 million
|
EBIT margin
|
5.9 percent to 6.1 percent
|
Earnings per diluted share (excluding the impact of any potential future share repurchase)
|
$3.65 to $3.90
|
•
|
We measure our performance through market share, customers and net sales metrics. As comparable sales growth is expected to approximate net sales growth in 2019, we will only report net sales growth.
|
•
|
The effective tax rate is expected to be approximately 26%.
|
•
|
Estimated outstanding shares are expected to be approximately 162, which excludes the impact of any potential future share repurchases.
|
|
12 Fiscal Months Ended
|
||||||||||||||||||
|
February 2, 2019
|
|
|
February 3, 2018
|
|
|
January 28, 2017
|
|
|
January 30, 2016
|
|
|
January 31, 2015
|
|
|||||
Net earnings
|
|
$564
|
|
|
|
$437
|
|
|
|
$354
|
|
|
|
$600
|
|
|
|
$720
|
|
Add: income tax expense
|
169
|
|
|
353
|
|
|
330
|
|
|
376
|
|
|
465
|
|
|||||
Add: interest expense
|
119
|
|
|
141
|
|
|
122
|
|
|
125
|
|
|
139
|
|
|||||
Earnings before interest and income tax expense
|
852
|
|
|
931
|
|
|
806
|
|
|
1,101
|
|
|
1,324
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Add: rent expense
|
251
|
|
|
250
|
|
|
202
|
|
|
176
|
|
|
137
|
|
|||||
Less: estimated depreciation on capitalized operating leases
1
|
(134
|
)
|
|
(133
|
)
|
|
(108
|
)
|
|
(94
|
)
|
|
(74
|
)
|
|||||
Adjusted net operating profit
|
969
|
|
|
1,048
|
|
|
900
|
|
|
1,183
|
|
|
1,387
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Less: estimated income tax expense
|
(223
|
)
|
|
(468
|
)
|
|
(416
|
)
|
|
(456
|
)
|
|
(544
|
)
|
|||||
Adjusted net operating profit after tax
|
|
$746
|
|
|
|
$580
|
|
|
|
$484
|
|
|
|
$727
|
|
|
|
$843
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average total assets
|
|
$8,282
|
|
|
|
$8,055
|
|
|
|
$7,917
|
|
|
|
$9,076
|
|
|
|
$8,860
|
|
Less: average non-interest-bearing current liabilities
2
|
(3,479
|
)
|
|
(3,261
|
)
|
|
(3,012
|
)
|
|
(2,993
|
)
|
|
(2,730
|
)
|
|||||
Less: average deferred property incentives and deferred rent liability
2
|
(616
|
)
|
|
(644
|
)
|
|
(644
|
)
|
|
(548
|
)
|
|
(502
|
)
|
|||||
Add: average estimated asset base of capitalized operating leases
1
|
2,018
|
|
|
1,805
|
|
|
1,512
|
|
|
1,236
|
|
|
1,058
|
|
|||||
Average invested capital
|
|
$6,205
|
|
|
|
$5,955
|
|
|
|
$5,773
|
|
|
|
$6,771
|
|
|
|
$6,686
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on assets
3
|
6.8
|
%
|
|
5.4
|
%
|
|
4.5
|
%
|
|
6.6
|
%
|
|
8.1
|
%
|
|||||
Adjusted ROIC
3
|
12.0
|
%
|
|
9.7
|
%
|
|
8.4
|
%
|
|
10.7
|
%
|
|
12.6
|
%
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Net cash provided by operating activities
|
|
$1,296
|
|
|
|
$1,400
|
|
|
|
$1,658
|
|
Net cash used in investing activities
|
(653
|
)
|
|
(684
|
)
|
|
(791
|
)
|
|||
Net cash used in financing activities
|
(867
|
)
|
|
(542
|
)
|
|
(455
|
)
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Capital expenditures
|
|
$654
|
|
|
|
$731
|
|
|
|
$846
|
|
Less: deferred property incentives
1
|
(53
|
)
|
|
(64
|
)
|
|
(65
|
)
|
|||
Capital expenditures, net
|
|
$601
|
|
|
|
$667
|
|
|
|
$781
|
|
|
|
|
|
|
|
||||||
Capital expenditures % of net sales
|
4.2
|
%
|
|
4.8
|
%
|
|
5.8
|
%
|
|||
|
|
|
|
|
|
||||||
Capital expenditures, net category allocation:
|
|
|
|
|
|
||||||
Technology
|
30
|
%
|
|
28
|
%
|
|
26
|
%
|
|||
Supply chain
|
18
|
%
|
|
4
|
%
|
|
4
|
%
|
|||
Generational investments
2
|
30
|
%
|
|
24
|
%
|
|
32
|
%
|
|||
New stores, relocations, remodels and other
|
22
|
%
|
|
44
|
%
|
|
38
|
%
|
|||
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Net cash provided by operating activities
|
|
$1,296
|
|
|
|
$1,400
|
|
|
|
$1,658
|
|
Less: capital expenditures
|
(654
|
)
|
|
(731
|
)
|
|
(846
|
)
|
|||
Add: proceeds from sale of credit card receivables originated at third parties
|
—
|
|
|
16
|
|
|
—
|
|
|||
(Less) Add:
change in cash book overdrafts
|
—
|
|
|
(55
|
)
|
|
4
|
|
|||
Free Cash Flow
|
|
$642
|
|
|
|
$630
|
|
|
|
$816
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Net earnings
|
|
$564
|
|
|
|
$437
|
|
|
|
$354
|
|
Add: income tax expense
|
169
|
|
|
353
|
|
|
330
|
|
|||
Add: interest expense, net
|
104
|
|
|
136
|
|
|
121
|
|
|||
Earnings before interest and income taxes
|
837
|
|
|
926
|
|
|
805
|
|
|||
|
|
|
|
|
|
||||||
Add: depreciation and amortization expenses
|
669
|
|
|
666
|
|
|
645
|
|
|||
Less: amortization of deferred property incentives
|
(79
|
)
|
|
(79
|
)
|
|
(80
|
)
|
|||
Adjusted EBITDA
|
|
$1,427
|
|
|
|
$1,513
|
|
|
|
$1,370
|
|
|
Credit Ratings
|
|
Outlook
|
|
Moody’s
|
Baa1
|
|
Stable
|
|
Standard & Poor’s
|
BBB+
|
|
Stable
|
|
|
|
|
|
|
|
Base Interest Rate
|
|
Applicable Margin
|
|
Euro-Dollar Rate Loan
|
LIBOR
|
|
1.03
|
%
|
Canadian Dealer Offer Rate Loan
|
CDOR
|
|
1.03
|
%
|
Base Rate Loan
|
various
|
|
0.03
|
%
|
|
2018
1
|
|
|
2017
1
|
|
||
Debt
|
|
$2,685
|
|
|
|
$2,737
|
|
Add: estimated capitalized operating lease liability
2
|
2,009
|
|
|
2,001
|
|
||
Adjusted Debt
|
|
$4,694
|
|
|
|
$4,738
|
|
|
|
|
|
||||
Net earnings
|
564
|
|
|
437
|
|
||
Add: income tax expense
|
169
|
|
|
353
|
|
||
Add: interest expense, net
|
104
|
|
|
136
|
|
||
Earnings before interest and income taxes
|
837
|
|
|
926
|
|
||
|
|
|
|
||||
Add: depreciation and amortization expenses
|
669
|
|
|
666
|
|
||
Add: rent expense, net
|
251
|
|
|
250
|
|
||
Add: non-cash acquisition-related charges
|
—
|
|
|
1
|
|
||
Adjusted EBITDAR
|
|
$1,757
|
|
|
|
$1,843
|
|
|
|
|
|
||||
Debt to Net Earnings
3
|
4.8
|
|
|
6.3
|
|
||
Adjusted Debt to EBITDAR
3
|
2.7
|
|
|
2.6
|
|
|
Total
|
|
|
Less than
1 year
|
|
|
1 – 3 years
|
|
|
3 – 5 years
|
|
|
More than
5 years
|
|
|||||
Long-term debt
|
|
$4,596
|
|
|
|
$147
|
|
|
|
$1,243
|
|
|
|
$188
|
|
|
|
$3,018
|
|
Operating leases
|
2,609
|
|
|
322
|
|
|
607
|
|
|
520
|
|
|
1,160
|
|
|||||
Purchase obligations
|
1,865
|
|
|
1,733
|
|
|
123
|
|
|
9
|
|
|
—
|
|
|||||
Other long-term liabilities
|
363
|
|
|
59
|
|
|
60
|
|
|
43
|
|
|
201
|
|
|||||
Total
|
|
$9,433
|
|
|
|
$2,261
|
|
|
|
$2,033
|
|
|
|
$760
|
|
|
|
$4,379
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Net sales
|
$15,480
|
|
|
|
$15,137
|
|
|
|
$14,498
|
|
|
Credit card revenues, net
|
380
|
|
|
341
|
|
|
259
|
|
|||
Total revenues
|
15,860
|
|
|
15,478
|
|
|
14,757
|
|
|||
Cost of sales and related buying and occupancy costs
|
(10,155
|
)
|
|
(9,890
|
)
|
|
(9,440
|
)
|
|||
Selling, general and administrative expenses
|
(4,868
|
)
|
|
(4,662
|
)
|
|
(4,315
|
)
|
|||
Goodwill impairment
|
—
|
|
|
—
|
|
|
(197
|
)
|
|||
Earnings before interest and income taxes
|
837
|
|
|
926
|
|
|
805
|
|
|||
Interest expense, net
|
(104
|
)
|
|
(136
|
)
|
|
(121
|
)
|
|||
Earnings before income taxes
|
733
|
|
|
790
|
|
|
684
|
|
|||
Income tax expense
|
(169
|
)
|
|
(353
|
)
|
|
(330
|
)
|
|||
Net earnings
|
|
$564
|
|
|
|
$437
|
|
|
|
$354
|
|
|
|
|
|
|
|
||||||
Earnings per share:
|
|
|
|
|
|
||||||
Basic
|
$3.37
|
|
|
|
$2.62
|
|
|
|
$2.05
|
|
|
Diluted
|
$3.32
|
|
|
|
$2.59
|
|
|
|
$2.02
|
|
|
|
|
|
|
|
|
||||||
Weighted-average shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
167.3
|
|
|
166.8
|
|
|
173.2
|
|
|||
Diluted
|
170.0
|
|
|
168.9
|
|
|
175.6
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Net earnings
|
|
$564
|
|
|
|
$437
|
|
|
|
$354
|
|
Postretirement plan adjustments, net of tax of ($5), $2 and ($1)
|
14
|
|
|
(6
|
)
|
|
1
|
|
|||
Foreign currency translation adjustment
|
(17
|
)
|
|
20
|
|
|
14
|
|
|||
Comprehensive net earnings
|
|
$561
|
|
|
|
$451
|
|
|
|
$369
|
|
|
February 2, 2019
|
|
|
February 3, 2018
|
|
||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
|
$957
|
|
|
|
$1,181
|
|
Accounts receivable, net
|
148
|
|
|
145
|
|
||
Merchandise inventories
|
1,978
|
|
|
2,027
|
|
||
Prepaid expenses and other
|
291
|
|
|
150
|
|
||
Total current assets
|
3,374
|
|
|
3,503
|
|
||
|
|
|
|
||||
Land, property and equipment, net
|
3,921
|
|
|
3,939
|
|
||
Goodwill
|
249
|
|
|
238
|
|
||
Other assets
|
342
|
|
|
435
|
|
||
Total assets
|
|
$7,886
|
|
|
|
$8,115
|
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
|
$1,469
|
|
|
|
$1,409
|
|
Accrued salaries, wages and related benefits
|
580
|
|
|
578
|
|
||
Other current liabilities
|
1,324
|
|
|
1,246
|
|
||
Current portion of long-term debt
|
8
|
|
|
56
|
|
||
Total current liabilities
|
3,381
|
|
|
3,289
|
|
||
|
|
|
|
||||
Long-term debt, net
|
2,677
|
|
|
2,681
|
|
||
Deferred property incentives, net
|
457
|
|
|
495
|
|
||
Other liabilities
|
498
|
|
|
673
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 11)
|
|
|
|
||||
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Common stock, no par value: 1,000 shares authorized; 157.6 and 167.0 shares issued and outstanding
|
3,048
|
|
|
2,816
|
|
||
Accumulated deficit
|
(2,138
|
)
|
|
(1,810
|
)
|
||
Accumulated other comprehensive loss
|
(37
|
)
|
|
(29
|
)
|
||
Total shareholders’ equity
|
873
|
|
|
977
|
|
||
Total liabilities and shareholders’ equity
|
|
$7,886
|
|
|
|
$8,115
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
Other
|
|
|
|
||||||||
|
|
Common Stock
|
|
Accumulated
|
|
|
Comprehensive
|
|
|
|
|||||||||
|
|
Shares
|
|
|
Amount
|
|
|
Deficit
|
|
|
Loss
|
|
|
Total
|
|
||||
Balance at January 30, 2016
|
|
173.5
|
|
|
|
$2,539
|
|
|
|
($1,610
|
)
|
|
|
($58
|
)
|
|
|
$871
|
|
Net earnings
|
|
—
|
|
|
—
|
|
|
354
|
|
|
—
|
|
|
354
|
|
||||
Other comprehensive earnings
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||
Dividends ($1.48 per share)
|
|
—
|
|
|
—
|
|
|
(256
|
)
|
|
—
|
|
|
(256
|
)
|
||||
Issuance of common stock under stock compensation plans
|
|
2.1
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
83
|
|
||||
Stock-based compensation
|
|
0.3
|
|
|
85
|
|
|
—
|
|
|
—
|
|
|
85
|
|
||||
Repurchase of common stock
|
|
(5.9
|
)
|
|
—
|
|
|
(282
|
)
|
|
—
|
|
|
(282
|
)
|
||||
Balance at January 28, 2017
|
|
170.0
|
|
|
2,707
|
|
|
(1,794
|
)
|
|
(43
|
)
|
|
870
|
|
||||
Net earnings
|
|
—
|
|
|
—
|
|
|
437
|
|
|
—
|
|
|
437
|
|
||||
Other comprehensive earnings
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
||||
Dividends ($1.48 per share)
|
|
—
|
|
|
—
|
|
|
(247
|
)
|
|
—
|
|
|
(247
|
)
|
||||
Issuance of common stock under stock compensation plans
|
|
1.1
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||
Stock-based compensation
|
|
0.5
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
70
|
|
||||
Repurchase of common stock
|
|
(4.6
|
)
|
|
—
|
|
|
(206
|
)
|
|
—
|
|
|
(206
|
)
|
||||
Balance at February 3, 2018
|
|
167.0
|
|
|
2,816
|
|
|
(1,810
|
)
|
|
(29
|
)
|
|
977
|
|
||||
Cumulative effect of adopted accounting standards
|
|
—
|
|
|
—
|
|
|
60
|
|
|
(5
|
)
|
|
55
|
|
||||
Net earnings
|
|
—
|
|
|
—
|
|
|
564
|
|
|
—
|
|
|
564
|
|
||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||
Dividends ($1.48 per share)
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
|
—
|
|
|
(250
|
)
|
||||
Issuance of common stock under stock compensation plans
|
|
4.0
|
|
|
163
|
|
|
—
|
|
|
—
|
|
|
163
|
|
||||
Stock-based compensation
|
|
0.9
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
||||
Repurchase of common stock
|
|
(14.3
|
)
|
|
—
|
|
|
(702
|
)
|
|
—
|
|
|
(702
|
)
|
||||
Balance at February 2, 2019
|
|
157.6
|
|
|
|
$3,048
|
|
|
|
($2,138
|
)
|
|
|
($37
|
)
|
|
|
$873
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Operating Activities
|
|
|
|
|
|
||||||
Net earnings
|
|
$564
|
|
|
|
$437
|
|
|
|
$354
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization expenses
|
669
|
|
|
666
|
|
|
645
|
|
|||
Goodwill impairment
|
—
|
|
|
—
|
|
|
197
|
|
|||
Amortization of deferred property incentives and other, net
|
(75
|
)
|
|
(82
|
)
|
|
(76
|
)
|
|||
Deferred income taxes, net
|
(34
|
)
|
|
11
|
|
|
(15
|
)
|
|||
Stock-based compensation expense
|
90
|
|
|
77
|
|
|
91
|
|
|||
Change in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(4
|
)
|
|
1
|
|
|
(3
|
)
|
|||
Proceeds from sale of credit card receivables originated at Nordstrom
|
—
|
|
|
39
|
|
|
—
|
|
|||
Merchandise inventories
|
15
|
|
|
(62
|
)
|
|
31
|
|
|||
Prepaid expenses and other assets
|
(8
|
)
|
|
(21
|
)
|
|
100
|
|
|||
Accounts payable
|
12
|
|
|
77
|
|
|
16
|
|
|||
Accrued salaries, wages and related benefits
|
1
|
|
|
121
|
|
|
38
|
|
|||
Other current liabilities
|
15
|
|
|
48
|
|
|
181
|
|
|||
Deferred property incentives
|
53
|
|
|
64
|
|
|
65
|
|
|||
Other liabilities
|
(2
|
)
|
|
24
|
|
|
34
|
|
|||
Net cash provided by operating activities
|
1,296
|
|
|
1,400
|
|
|
1,658
|
|
|||
|
|
|
|
|
|
||||||
Investing Activities
|
|
|
|
|
|
||||||
Capital expenditures
|
(654
|
)
|
|
(731
|
)
|
|
(846
|
)
|
|||
Proceeds from sale of credit card receivables originated at third parties
|
—
|
|
|
16
|
|
|
—
|
|
|||
Other, net
|
1
|
|
|
31
|
|
|
55
|
|
|||
Net cash used in investing activities
|
(653
|
)
|
|
(684
|
)
|
|
(791
|
)
|
|||
|
|
|
|
|
|
||||||
Financing Activities
|
|
|
|
|
|
||||||
Proceeds from long-term borrowings, net of discounts
|
—
|
|
|
635
|
|
|
—
|
|
|||
Principal payments on long-term borrowings
|
(56
|
)
|
|
(661
|
)
|
|
(10
|
)
|
|||
(Decrease) increase in cash book overdrafts
|
—
|
|
|
(55
|
)
|
|
4
|
|
|||
Cash dividends paid
|
(250
|
)
|
|
(247
|
)
|
|
(256
|
)
|
|||
Payments for repurchase of common stock
|
(678
|
)
|
|
(211
|
)
|
|
(277
|
)
|
|||
Proceeds from issuances under stock compensation plans
|
163
|
|
|
39
|
|
|
83
|
|
|||
Tax withholding on share-based awards
|
(20
|
)
|
|
(7
|
)
|
|
(5
|
)
|
|||
Other, net
|
(26
|
)
|
|
(35
|
)
|
|
6
|
|
|||
Net cash used in financing activities
|
(867
|
)
|
|
(542
|
)
|
|
(455
|
)
|
|||
|
|
|
|
|
|
||||||
Net (decrease) increase in cash and cash equivalents
|
(224
|
)
|
|
174
|
|
|
412
|
|
|||
Cash and cash equivalents at beginning of year
|
1,181
|
|
|
1,007
|
|
|
595
|
|
|||
Cash and cash equivalents at end of year
|
|
$957
|
|
|
|
$1,181
|
|
|
|
$1,007
|
|
|
|
|
|
|
|
||||||
Supplemental Cash Flow Information
|
|
|
|
|
|
||||||
Cash paid during the year for:
|
|
|
|
|
|
||||||
Income taxes, net of refunds
|
$280
|
|
|
|
$363
|
|
|
|
$112
|
|
|
Interest, net of capitalized interest
|
118
|
|
|
143
|
|
|
134
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Cosmetic expenses
|
|
$149
|
|
|
|
$159
|
|
|
|
$166
|
|
Purchase price adjustments
|
180
|
|
|
184
|
|
|
179
|
|
|||
Cooperative advertising
|
115
|
|
|
107
|
|
|
114
|
|
|||
Other
|
6
|
|
|
7
|
|
|
6
|
|
|||
Total vendor allowances
|
|
$450
|
|
|
|
$457
|
|
|
|
$465
|
|
Asset
|
Life (in years)
|
Buildings and improvements
|
5 – 40
|
Store fixtures and equipment
|
3 – 15
|
Leasehold improvements
|
5 – 40
|
Capitalized software
|
3 – 7
|
|
Trunk Club
|
|
|
HauteLook
|
|
|
Other
1
|
|
|
Total
|
|
||||
Balance at January 30, 2016
|
|
$261
|
|
|
|
$121
|
|
|
|
$53
|
|
|
|
$435
|
|
Impairment
|
(197
|
)
|
|
—
|
|
|
—
|
|
|
(197
|
)
|
||||
Balance at January 28, 2017
|
64
|
|
|
121
|
|
|
53
|
|
|
238
|
|
||||
Additions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance at February 3, 2018
|
64
|
|
|
121
|
|
|
53
|
|
|
238
|
|
||||
Additions
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
||||
Balance at February 2, 2019
|
|
$64
|
|
|
|
$121
|
|
|
|
$64
|
|
|
|
$249
|
|
•
|
Recognition of additional net assets and liabilities of approximately
$1,500
to
$2,000
as of February 3, 2019.
|
•
|
We do not expect the provisions of this ASU to have a material impact on our Consolidated Statement of Earnings, Consolidated Statement of Cash Flows or Consolidated Statement of Shareholders’ Equity.
|
|
February 2, 2019
|
||||||||||
|
As Reported
|
|
|
Revenue Standard Adjustment
|
|
|
Excluding Impact of Revenue Standard
|
|
|||
Assets
|
|
|
|
|
|
||||||
Merchandise inventories
|
|
$1,978
|
|
|
|
$40
|
|
|
|
$2,018
|
|
Prepaid expenses and other
|
291
|
|
|
(128
|
)
|
|
163
|
|
|||
Other assets
|
342
|
|
|
75
|
|
|
417
|
|
|||
|
|
|
|
|
|
||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
||||||
Other current liabilities
|
1,324
|
|
|
(53
|
)
|
|
1,271
|
|
|||
Other liabilities
|
498
|
|
|
99
|
|
|
597
|
|
|||
Accumulated deficit
|
(2,138
|
)
|
|
(59
|
)
|
|
(2,197
|
)
|
|
Contract Liabilities
|
|
|
Opening balance as of February 4, 2018
|
|
$498
|
|
Ending balance as of February 2, 2019
|
548
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Net sales by business
1,2
:
|
|
|
|
|
|
||||||
Full-Price
|
10,299
|
|
|
10,452
|
|
|
10,259
|
|
|||
Off-Price
|
5,181
|
|
|
4,956
|
|
|
4,509
|
|
|||
Other
|
—
|
|
|
(271
|
)
|
|
(270
|
)
|
|||
Total net sales
|
|
$15,480
|
|
|
|
$15,137
|
|
|
|
$14,498
|
|
|
|
|
|
|
|
||||||
Digital sales as % of net sales
3
|
30
|
%
|
|
27
|
%
|
|
24
|
%
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
Women’s Apparel
|
32
|
%
|
|
32
|
%
|
|
32
|
%
|
Shoes
|
24
|
%
|
|
23
|
%
|
|
23
|
%
|
Men’s Apparel
|
16
|
%
|
|
16
|
%
|
|
17
|
%
|
Women’s Accessories
|
11
|
%
|
|
11
|
%
|
|
11
|
%
|
Beauty
|
11
|
%
|
|
11
|
%
|
|
11
|
%
|
Kids’ Apparel
|
4
|
%
|
|
4
|
%
|
|
3
|
%
|
Other
|
2
|
%
|
|
3
|
%
|
|
3
|
%
|
Total net sales
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
February 2, 2019
|
|
|
February 3, 2018
|
|
||
Land and land improvements
|
|
$111
|
|
|
|
$111
|
|
Buildings and building improvements
|
1,240
|
|
|
1,246
|
|
||
Leasehold improvements
|
3,152
|
|
|
3,099
|
|
||
Store fixtures and equipment
|
3,832
|
|
|
3,724
|
|
||
Capitalized software
|
1,492
|
|
|
1,280
|
|
||
Construction in progress
|
741
|
|
|
584
|
|
||
Land, property and equipment
|
10,568
|
|
|
10,044
|
|
||
Less: accumulated depreciation and amortization
|
(6,647
|
)
|
|
(6,105
|
)
|
||
Land, property and equipment, net
|
|
$3,921
|
|
|
|
$3,939
|
|
|
February 2, 2019
|
|
|
February 3, 2018
|
|
||
Workers’ compensation
|
$77
|
|
|
|
$71
|
|
|
Employee health and welfare
|
25
|
|
|
26
|
|
||
Other liability
|
15
|
|
|
18
|
|
||
Total self-insurance reserve
|
|
$117
|
|
|
|
$115
|
|
|
February 2, 2019
|
|
|
February 3, 2018
|
|
||
Change in benefit obligation:
|
|
|
|
||||
Benefit obligation at beginning of year
|
|
$200
|
|
|
|
$188
|
|
Participant service cost
|
2
|
|
|
3
|
|
||
Interest cost
|
7
|
|
|
7
|
|
||
Benefits paid
|
(9
|
)
|
|
(8
|
)
|
||
Actuarial (gain) loss
|
(10
|
)
|
|
10
|
|
||
Benefit obligation at end of year
|
190
|
|
|
200
|
|
||
Change in plan assets:
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
—
|
|
|
—
|
|
||
Employer contribution
|
9
|
|
|
8
|
|
||
Benefits paid
|
(9
|
)
|
|
(8
|
)
|
||
Fair value of plan assets at end of year
|
—
|
|
|
—
|
|
||
Underfunded status at end of year
|
|
($190
|
)
|
|
|
($200
|
)
|
|
February 2, 2019
|
|
|
February 3, 2018
|
|
||
Accrued salaries, wages and related benefits
|
|
$10
|
|
|
|
$9
|
|
Other liabilities (noncurrent)
|
180
|
|
|
191
|
|
||
Net amount recognized
|
|
$190
|
|
|
|
$200
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Participant service cost
|
|
$2
|
|
|
|
$3
|
|
|
|
$3
|
|
Interest cost
|
7
|
|
|
7
|
|
|
7
|
|
|||
Amortization of net loss and other
|
5
|
|
|
3
|
|
|
3
|
|
|||
Total SERP expense
|
|
$14
|
|
|
|
$13
|
|
|
|
$13
|
|
|
February 2, 2019
|
|
|
February 3, 2018
|
|
||
Accumulated loss
|
|
($30
|
)
|
|
|
($46
|
)
|
Prior service credit
|
1
|
|
|
2
|
|
||
Total accumulated other comprehensive loss
|
|
($29
|
)
|
|
|
($44
|
)
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
Assumptions used to determine benefit obligation:
|
|
|
|
|
|
|||
Discount rate
|
4.27
|
%
|
|
3.95
|
%
|
|
4.31
|
%
|
Rate of compensation increase
|
2.50
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
Assumptions used to determine SERP expense:
|
|
|
|
|
|
|||
Discount rate
|
3.95
|
%
|
|
4.31
|
%
|
|
4.55
|
%
|
Rate of compensation increase
|
3.00
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
Fiscal year
|
|
||
2019
|
|
$10
|
|
2020
|
11
|
|
|
2021
|
11
|
|
|
2022
|
11
|
|
|
2023
|
12
|
|
|
2024 – 2028
|
61
|
|
|
February 2, 2019
|
|
|
February 3, 2018
|
|
||
Secured
|
|
|
|
||||
Mortgage payable, 7.68%, due April 2020
|
|
$10
|
|
|
|
$17
|
|
Other
|
—
|
|
|
1
|
|
||
Total secured debt
|
10
|
|
|
18
|
|
||
Unsecured
|
|
|
|
||||
Net of unamortized discount:
|
|
|
|
||||
Senior notes, 4.75%, due May 2020
|
500
|
|
|
500
|
|
||
Senior notes, 4.00%, due October 2021
|
500
|
|
|
500
|
|
||
Senior notes, 4.00%, due March 2027
|
349
|
|
|
349
|
|
||
Senior debentures, 6.95%, due March 2028
|
300
|
|
|
300
|
|
||
Senior notes, 7.00%, due January 2038
|
146
|
|
|
146
|
|
||
Senior notes, 5.00%, due January 2044
|
895
|
|
|
892
|
|
||
Other
1
|
(15
|
)
|
|
32
|
|
||
Total unsecured debt
|
2,675
|
|
|
2,719
|
|
||
|
|
|
|
||||
Total long-term debt
|
2,685
|
|
|
2,737
|
|
||
Less: current portion
|
(8
|
)
|
|
(56
|
)
|
||
Total due beyond one year
|
|
$2,677
|
|
|
|
$2,681
|
|
Fiscal year
|
|
||
2019
|
|
$8
|
|
2020
|
502
|
|
|
2021
|
500
|
|
|
2022
|
—
|
|
|
2023
|
—
|
|
|
Thereafter
|
1,764
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Interest on long-term debt and short-term borrowings
|
|
$146
|
|
|
|
$168
|
|
|
|
$147
|
|
Less:
|
|
|
|
|
|
||||||
Interest income
|
(15
|
)
|
|
(5
|
)
|
|
(1
|
)
|
|||
Capitalized interest
|
(27
|
)
|
|
(27
|
)
|
|
(25
|
)
|
|||
Interest expense, net
|
|
$104
|
|
|
|
$136
|
|
|
|
$121
|
|
|
February 2, 2019
|
|
|
February 3, 2018
|
|
||
Carrying value of long-term debt
|
|
$2,685
|
|
|
|
$2,737
|
|
Fair value of long-term debt
|
2,692
|
|
|
2,827
|
|
Fiscal year
|
|
Operating leases
|
|
|
2019
|
|
|
$322
|
|
2020
|
|
313
|
|
|
2021
|
|
294
|
|
|
2022
|
|
271
|
|
|
2023
|
|
249
|
|
|
Thereafter
|
|
1,160
|
|
|
Total minimum lease payments
|
|
|
$2,609
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Minimum rent:
|
|
|
|
|
|
||||||
Store locations
|
|
$283
|
|
|
|
$274
|
|
|
|
$230
|
|
Other
1
|
38
|
|
|
44
|
|
|
40
|
|
|||
Percentage rent
|
9
|
|
|
11
|
|
|
12
|
|
|||
Property incentives
|
(79
|
)
|
|
(79
|
)
|
|
(80
|
)
|
|||
Total rent expense
|
|
$251
|
|
|
|
$250
|
|
|
|
$202
|
|
|
Shares
|
|
|
Average price
per share
|
|
|
Amount
|
|
||
Capacity at January 30, 2016
|
|
|
|
|
|
$811
|
|
|||
Shares repurchased
|
5.9
|
|
|
|
$48
|
|
|
(282
|
)
|
|
Capacity at January 28, 2017
|
|
|
|
|
529
|
|
||||
February 2017 authorization (ended August 31, 2018)
|
|
|
|
|
500
|
|
||||
Shares repurchased
|
4.6
|
|
|
|
$45
|
|
|
(206
|
)
|
|
Expiration of unused October 2015 authorization capacity in March 2017
|
|
|
|
|
(409
|
)
|
||||
Capacity at February 3, 2018
|
|
|
|
|
414
|
|
||||
August 2018 authorization (no expiration)
|
|
|
|
|
1,500
|
|
||||
Shares repurchased
|
14.3
|
|
|
|
$49
|
|
|
(702
|
)
|
|
Expiration of unused February 2017 authorization capacity in August 2018
|
|
|
|
|
(319
|
)
|
||||
Capacity at February 2, 2019
|
|
|
|
|
|
$893
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Restricted stock units
|
|
$71
|
|
|
|
$51
|
|
|
|
$34
|
|
Stock options
|
12
|
|
|
18
|
|
|
36
|
|
|||
Acquisition-related stock compensation
|
—
|
|
|
1
|
|
|
15
|
|
|||
Other
1
|
7
|
|
|
7
|
|
|
6
|
|
|||
Total stock-based compensation expense, before income tax benefit
|
90
|
|
|
77
|
|
|
91
|
|
|||
Income tax benefit
|
(23
|
)
|
|
(20
|
)
|
|
(28
|
)
|
|||
Total stock-based compensation expense, net of income tax benefit
|
|
$67
|
|
|
|
$57
|
|
|
|
$63
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Cost of sales and related buying and occupancy costs
|
|
$28
|
|
|
|
$25
|
|
|
|
$25
|
|
Selling, general and administrative expenses
|
62
|
|
|
52
|
|
|
66
|
|
|||
Total stock-based compensation expense, before income tax benefit
|
|
$90
|
|
|
|
$77
|
|
|
|
$91
|
|
Fiscal year
|
2018
|
|||||
|
Shares
|
|
|
Weighted-average grant date fair value per unit
|
|
|
Outstanding, beginning of year
|
3.3
|
|
|
|
$45
|
|
Granted
|
2.2
|
|
|
49
|
|
|
Vested
|
(1.2
|
)
|
|
46
|
|
|
Forfeited or cancelled
|
(0.4
|
)
|
|
46
|
|
|
Outstanding, end of year
|
3.9
|
|
|
|
$47
|
|
Fiscal Year
|
2017
|
|
|
2016
|
|
|||
Assumptions
|
|
|
|
|||||
|
Risk-free interest rate:
Represents the yield on U.S. Treasury zero-coupon securities that mature over the 10-year life of the stock options.
|
1.0% – 2.5%
|
|
|
0.7% – 1.9%
|
|
||
|
Weighted-average volatility:
Based on a combination of the historical volatility of our common stock and the implied volatility of exchange-traded options for our common stock.
|
40.1
|
%
|
|
36.8
|
%
|
||
|
Weighted-average expected dividend yield:
Our forecasted dividend yield for the next 10 years.
|
2.4
|
%
|
|
2.2
|
%
|
||
|
Expected life in years:
Represents the estimated period of time until option exercise. The expected term of options granted was derived from the output of the Binomial Lattice option valuation model and was based on our historical exercise behavior, taking into consideration the contractual term of the option and our employees’ expected exercise and post-vesting employment termination behavior.
|
7.1
|
|
|
6.9
|
|
||
|
|
|
|
|
||||
Grant Date Information
|
|
|
|
|||||
|
Date of grant
|
February 28, 2017
|
|
|
February 29, 2016
|
|
||
|
Weighted-average fair value per option
|
|
$16
|
|
|
|
$16
|
|
|
Exercise price per option
|
|
$47
|
|
|
|
$51
|
|
Fiscal year
|
2018
|
|||||||||||||
|
Shares
|
|
|
Weighted-
average
exercise price
|
|
|
Weighted-average
remaining
contractual
life (years)
|
|
|
Aggregate
intrinsic
value
|
|
|||
Outstanding, beginning of year
|
12.3
|
|
|
|
$49
|
|
|
|
|
|
||||
Exercised
|
(3.6
|
)
|
|
40
|
|
|
|
|
|
|||||
Forfeited or cancelled
|
(0.3
|
)
|
|
57
|
|
|
|
|
|
|||||
Outstanding, end of year
|
8.4
|
|
|
|
$53
|
|
|
5
|
|
|
|
$62
|
|
|
Vested, end of year
|
6.6
|
|
|
|
$52
|
|
|
4
|
|
|
|
$47
|
|
|
Vested or expected to vest, end of year
|
8.0
|
|
|
|
$53
|
|
|
5
|
|
|
|
$57
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fiscal year
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
||||
Aggregate intrinsic value of options exercised
|
|
|
|
$67
|
|
|
|
$13
|
|
|
|
$30
|
|
|
Fair value of stock options vested
|
|
|
|
$22
|
|
|
|
$34
|
|
|
|
$40
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
U.S.
|
|
$792
|
|
|
|
$803
|
|
|
|
$687
|
|
Foreign
|
(59
|
)
|
|
(13
|
)
|
|
(3
|
)
|
|||
Earnings before income taxes
|
|
$733
|
|
|
|
$790
|
|
|
|
$684
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Current income taxes:
|
|
|
|
|
|
||||||
Federal
|
|
$147
|
|
|
|
$291
|
|
|
|
$290
|
|
State and local
|
56
|
|
|
51
|
|
|
54
|
|
|||
Foreign
|
—
|
|
|
—
|
|
|
1
|
|
|||
Total current income tax expense
|
203
|
|
|
342
|
|
|
345
|
|
|||
Deferred income taxes:
|
|
|
|
|
|
||||||
Federal
|
(5
|
)
|
|
10
|
|
|
(17
|
)
|
|||
State and local
|
(3
|
)
|
|
1
|
|
|
(5
|
)
|
|||
Foreign
|
(26
|
)
|
|
—
|
|
|
7
|
|
|||
Total deferred income tax (benefit) expense
|
(34
|
)
|
|
11
|
|
|
(15
|
)
|
|||
Total income tax expense
|
|
$169
|
|
|
|
$353
|
|
|
|
$330
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
Statutory rate
|
21.0
|
%
|
|
33.7
|
%
|
|
35.0
|
%
|
Tax Act impact
|
(0.1
|
%)
|
|
6.1
|
%
|
|
—
|
|
Goodwill impairment
|
—
|
|
|
—
|
|
|
10.1
|
%
|
State and local income taxes, net of federal income taxes
|
5.8
|
%
|
|
4.5
|
%
|
|
5.1
|
%
|
Federal credits
|
(1.5
|
%)
|
|
(0.7
|
%)
|
|
(0.6
|
%)
|
Valuation allowance release
|
(1.2
|
%)
|
|
—
|
|
|
—
|
|
Other, net
|
(0.9
|
%)
|
|
1.1
|
%
|
|
(1.4
|
%)
|
Effective tax rate
|
23.1
|
%
|
|
44.7
|
%
|
|
48.2
|
%
|
|
February 2, 2019
|
|
|
February 3, 2018
|
|
||
Deferred tax assets:
|
|
|
|
||||
Compensation and benefits accruals
|
|
$139
|
|
|
|
$148
|
|
Allowance for sales returns
|
52
|
|
|
50
|
|
||
Credit card receivable transaction
|
(4
|
)
|
|
8
|
|
||
Accrued expenses
|
28
|
|
|
27
|
|
||
Merchandise inventories
|
20
|
|
|
12
|
|
||
Gift cards
|
26
|
|
|
27
|
|
||
Loyalty program
|
12
|
|
|
—
|
|
||
Federal benefit of state taxes
|
7
|
|
|
16
|
|
||
Net operating losses
|
41
|
|
|
22
|
|
||
Other
|
2
|
|
|
2
|
|
||
Total deferred tax assets
|
323
|
|
|
312
|
|
||
Valuation allowance
|
(43
|
)
|
|
(51
|
)
|
||
Total net deferred tax assets
|
280
|
|
|
261
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Land, property and equipment basis and depreciation differences
|
(94
|
)
|
|
(109
|
)
|
||
Debt exchange premium
|
(13
|
)
|
|
(14
|
)
|
||
Total deferred tax liabilities
|
(107
|
)
|
|
(123
|
)
|
||
Net deferred tax assets
|
|
$173
|
|
|
|
$138
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Unrecognized tax benefit at beginning of year
|
|
$31
|
|
|
|
$32
|
|
|
|
$19
|
|
Gross increase to tax positions in prior periods
|
9
|
|
|
2
|
|
|
16
|
|
|||
Gross decrease to tax positions in prior periods
|
(14
|
)
|
|
(7
|
)
|
|
—
|
|
|||
Gross increase to tax positions in current period
|
6
|
|
|
5
|
|
|
2
|
|
|||
Lapses in statute
|
(2
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|||
Unrecognized tax benefit at end of year
|
|
$30
|
|
|
|
$31
|
|
|
|
$32
|
|
Fiscal year
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Net earnings
|
|
$564
|
|
|
|
$437
|
|
|
|
$354
|
|
|
|
|
|
|
|
||||||
Basic shares
|
167.3
|
|
|
166.8
|
|
|
173.2
|
|
|||
Dilutive effect of common stock equivalents
|
2.7
|
|
|
2.1
|
|
|
2.4
|
|
|||
Diluted shares
|
170.0
|
|
|
168.9
|
|
|
175.6
|
|
|||
|
|
|
|
|
|
||||||
Earnings per basic share
|
|
$3.37
|
|
|
|
$2.62
|
|
|
|
$2.05
|
|
Earnings per diluted share
|
|
$3.32
|
|
|
|
$2.59
|
|
|
|
$2.02
|
|
|
|
|
|
|
|
||||||
Anti-dilutive common stock equivalents
|
5.2
|
|
|
10.5
|
|
|
8.0
|
|
|
Retail
|
|
|
Corporate/Other
|
|
|
Total
|
|
|||
Fiscal year 2018
|
|
|
|
|
|
||||||
Net sales
|
|
$15,480
|
|
|
|
$—
|
|
|
|
$15,480
|
|
Credit card revenues, net
|
—
|
|
|
380
|
|
|
380
|
|
|||
Earnings (loss) before interest and income taxes
|
1,095
|
|
|
(258
|
)
|
|
837
|
|
|||
Interest expense, net
|
—
|
|
|
(104
|
)
|
|
(104
|
)
|
|||
Earnings (loss) before income taxes
|
1,095
|
|
|
(362
|
)
|
|
733
|
|
|||
Capital expenditures
|
415
|
|
|
239
|
|
|
654
|
|
|||
Depreciation and amortization
|
436
|
|
|
233
|
|
|
669
|
|
|||
Assets
|
5,300
|
|
|
2,586
|
|
|
7,886
|
|
|||
|
|
|
|
|
|
||||||
Fiscal year 2017
|
|
|
|
|
|
||||||
Net sales
1
|
|
$15,408
|
|
|
|
($271
|
)
|
|
|
$15,137
|
|
Credit card revenues, net
|
—
|
|
|
341
|
|
|
341
|
|
|||
Earnings (loss) before interest and income taxes
|
1,111
|
|
|
(185
|
)
|
|
926
|
|
|||
Interest expense, net
|
—
|
|
|
(136
|
)
|
|
(136
|
)
|
|||
Earnings (loss) before income taxes
|
1,111
|
|
|
(321
|
)
|
|
790
|
|
|||
Capital expenditures
|
516
|
|
|
215
|
|
|
731
|
|
|||
Depreciation and amortization
|
445
|
|
|
221
|
|
|
666
|
|
|||
Assets
|
5,477
|
|
|
2,638
|
|
|
8,115
|
|
|||
|
|
|
|
|
|
||||||
Fiscal year 2016
|
|
|
|
|
|
||||||
Net sales
1
|
|
$14,768
|
|
|
|
($270
|
)
|
|
|
$14,498
|
|
Credit card revenues, net
|
—
|
|
|
259
|
|
|
259
|
|
|||
Earnings (loss) before interest and income taxes
|
917
|
|
|
(112
|
)
|
|
805
|
|
|||
Interest expense, net
|
—
|
|
|
(121
|
)
|
|
(121
|
)
|
|||
Earnings (loss) before income taxes
|
917
|
|
|
(233
|
)
|
|
684
|
|
|||
Capital expenditures
|
593
|
|
|
253
|
|
|
846
|
|
|||
Depreciation and amortization
|
456
|
|
|
189
|
|
|
645
|
|
|||
Assets
|
5,770
|
|
|
2,088
|
|
|
7,858
|
|
|
1st Quarter
|
|
|
2nd Quarter
|
|
|
3rd Quarter
|
|
|
4th Quarter
|
|
|
Total
|
|
|||||
Fiscal year 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$3,469
|
|
|
|
$3,980
|
|
|
|
$3,648
|
|
|
|
$4,383
|
|
|
|
$15,480
|
|
Comparable sales increase
2
|
0.6
|
%
|
|
4.0
|
%
|
|
2.3
|
%
|
|
0.1
|
%
|
|
1.7
|
%
|
|||||
Credit card revenues, net
|
92
|
|
|
87
|
|
|
100
|
|
|
101
|
|
|
380
|
|
|||||
Gross profit
|
1,181
|
|
|
1,391
|
|
|
1,213
|
|
|
1,540
|
|
|
5,325
|
|
|||||
Selling, general and administrative expenses
3
|
(1,120
|
)
|
|
(1,232
|
)
|
|
(1,208
|
)
|
|
(1,308
|
)
|
|
(4,868
|
)
|
|||||
Earnings before interest and income taxes
3
|
153
|
|
|
246
|
|
|
105
|
|
|
333
|
|
|
837
|
|
|||||
Net earnings
|
87
|
|
|
162
|
|
|
67
|
|
|
248
|
|
|
564
|
|
|||||
Earnings per basic share
3
|
|
$0.52
|
|
|
|
$0.97
|
|
|
|
$0.40
|
|
|
|
$1.50
|
|
|
|
$3.37
|
|
Earnings per diluted share
3
|
|
$0.51
|
|
|
|
$0.95
|
|
|
|
$0.39
|
|
|
|
$1.48
|
|
|
|
$3.32
|
|
Dividends per share
|
|
$0.37
|
|
|
|
$0.37
|
|
|
|
$0.37
|
|
|
|
$0.37
|
|
|
|
$1.48
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fiscal year 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$3,279
|
|
|
|
$3,717
|
|
|
|
$3,541
|
|
|
|
$4,600
|
|
|
|
$15,137
|
|
Comparable sales (decrease) increase
2
|
(0.8
|
%)
|
|
1.7
|
%
|
|
(0.9
|
%)
|
|
2.6
|
%
|
|
0.8
|
%
|
|||||
Credit card revenues, net
|
75
|
|
|
76
|
|
|
88
|
|
|
102
|
|
|
341
|
|
|||||
Gross profit
|
1,124
|
|
|
1,266
|
|
|
1,226
|
|
|
1,631
|
|
|
5,247
|
|
|||||
Selling, general and administrative expenses
|
(1,048
|
)
|
|
(1,125
|
)
|
|
(1,106
|
)
|
|
(1,383
|
)
|
|
(4,662
|
)
|
|||||
Earnings before interest and income taxes
|
151
|
|
|
217
|
|
|
208
|
|
|
350
|
|
|
926
|
|
|||||
Net earnings
|
63
|
|
|
110
|
|
|
114
|
|
|
151
|
|
|
437
|
|
|||||
Earnings per basic share
|
|
$0.38
|
|
|
|
$0.66
|
|
|
|
$0.68
|
|
|
|
$0.90
|
|
|
|
$2.62
|
|
Earnings per diluted share
|
|
$0.37
|
|
|
|
$0.65
|
|
|
|
$0.67
|
|
|
|
$0.89
|
|
|
|
$2.59
|
|
Dividends per share
|
|
$0.37
|
|
|
|
$0.37
|
|
|
|
$0.37
|
|
|
|
$0.37
|
|
|
|
$1.48
|
|
|
Page
|
Report of Independent Registered Public Accounting Firm
|
|
Consolidated Statements of Earnings
|
|
Consolidated Statements of Comprehensive Earnings
|
|
Consolidated Balance Sheets
|
|
Consolidated Statements of Shareholders’ Equity
|
|
Consolidated Statements of Cash Flows
|
|
Management’s Report on Internal Control Over Financial Reporting
|
|
Report of Independent Registered Public Accounting Firm
|
|
Exhibit
|
|
Method of Filing
|
10.52*
|
|
Incorporated by reference from the Registrant’s Form 8-K filed on February 23, 2017, Exhibit 10.2
|
|
|
|
|
|
10.53*
|
|
Incorporated by reference from the Registrant’s Annual Report on Form 10-K for the year ended January 28, 2017, Exhibit 10.67
|
|
|
|
|
|
10.54*
|
|
Incorporated by reference from the Registrant’s Form 8-K filed on March 8, 2018, Exhibit 10.1
|
|
|
|
|
|
10.55*
|
|
Incorporated by reference from the Registrant’s Form 8-K filed on March 4, 2019, Exhibit 10.3
|
|
|
|
|
|
10.56*
|
|
Incorporated by reference from the Registrant’s Form 8-K filed on March 8, 2018, Exhibit 10.2
|
|
|
|
|
|
10.57
|
|
Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 31, 2004, Exhibit 10.4
|
|
|
|
|
|
10.58
|
|
Incorporated by reference from the Registrant’s Form 8-K filed on October 2, 2018, Exhibit 10.1
|
|
|
|
|
|
10.59
|
|
Incorporated by reference from the Registrant’s Form 8-K filed on September 4, 2014, Exhibit 99.1
|
|
|
|
|
|
10.60
|
|
Incorporated by reference from the Registrant’s Form 8-K filed on October 2, 2015, Exhibit 99.1
|
|
|
|
|
|
10.61
|
|
Incorporated by reference from the Registrant’s Form 8-K filed on February 21, 2017, Exhibit 99.2
|
|
|
|
|
|
10.62
|
|
Incorporated by reference from the Registrant’s Form 8-K filed on August 27, 2018, Exhibit 99.1
|
|
|
|
|
|
10.63
|
|
Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended August 1, 2015, Exhibit 10.1
|
|
|
|
|
|
10.64
|
|
Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended October 31, 2015, Exhibit 10.1
|
|
|
|
|
|
10.65
|
|
Incorporated by reference from the Registrant’s Form 8-K filed on June 8, 2017, Exhibit 99.2, and the Registrant’s SC 13D filed on June 8, 2017, Exhibit 3
|
|
|
|
|
|
21.1
|
|
Filed herewith electronically
|
|
|
|
|
|
23.1
|
|
Filed as page
73
of this report
|
|
|
|
|
|
31.1
|
|
Filed herewith electronically
|
|
|
|
|
|
31.2
|
|
Filed herewith electronically
|
|
*This exhibit is a management contract, compensatory plan or arrangement.
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Exhibit
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Method of Filing
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32.1
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Furnished herewith electronically
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101.INS
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XBRL Instance Document
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Filed herewith electronically
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101.SCH
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XBRL Taxonomy Extension Schema Document
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Filed herewith electronically
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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Filed herewith electronically
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101.LAB
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XBRL Taxonomy Extension Labels Linkbase Document
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Filed herewith electronically
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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Filed herewith electronically
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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Filed herewith electronically
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NORDSTROM, INC.
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(Registrant)
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/s/
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Anne L. Bramman
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Anne L. Bramman
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Chief Financial Officer
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(Principal Financial Officer)
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Principal Financial Officer:
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Principal Executive Officer:
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||
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/s/
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Anne L. Bramman
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/s/
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Erik B. Nordstrom
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Anne L. Bramman
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Erik B. Nordstrom
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Chief Financial Officer
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Co-President
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Principal Accounting Officer:
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/s/
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Kelley K. Hall
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Kelley K. Hall
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Chief Accounting Officer and Treasurer
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Directors:
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/s/
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Shellye L. Archambeau
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/s/
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Stacy Brown-Philpot
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Shellye L. Archambeau
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Stacy Brown-Philpot
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Director
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Director
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/s/
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Tanya L. Domier
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/s/
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Kirsten A. Green
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Tanya L. Domier
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Kirsten A. Green
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Director
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Director
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/s/
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Glenda G. McNeal
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/s/
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Erik B. Nordstrom
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Glenda G. McNeal
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Erik B. Nordstrom
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Director
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Director
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/s/
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Peter E. Nordstrom
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/s/
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Philip G. Satre
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Peter E. Nordstrom
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Philip G. Satre
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Director
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Director
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/s/
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Brad D. Smith
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/s/
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Gordon A. Smith
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Brad D. Smith
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Gordon A. Smith
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Chairman of the Board of Directors
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Director
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/s/
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Bradley D. Tilden
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/s/
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B. Kevin Turner
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Bradley D. Tilden
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B. Kevin Turner
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Director
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Director
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Date:
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March 18, 2019
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Name of Subsidiary
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State of Incorporation
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Nordstrom International Limited
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Washington
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Nordstrom Canada Holdings, LLC
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Delaware
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Trunk Club, Inc.
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Delaware
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Date:
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March 18, 2019
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/s/ Erik B. Nordstrom
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Erik B. Nordstrom
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Co-President of Nordstrom, Inc.
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Date:
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March 18, 2019
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/s/ Anne L. Bramman
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Anne L. Bramman
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Chief Financial Officer of Nordstrom, Inc.
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•
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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•
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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March 18, 2019
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/s/ Erik B. Nordstrom
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Erik B. Nordstrom
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Co-President of Nordstrom, Inc.
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/s/ Anne L. Bramman
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Anne L. Bramman
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Chief Financial Officer of Nordstrom, Inc.
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