Washington
|
|
001-15059
|
|
91-0515058
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(IRS Employer
Identification No.)
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
Common stock, without par value
|
JWN
|
New York Stock Exchange
|
Executive
|
2019
Bonus1
|
|
2020
Base Salary2
|
||||
Erik B. Nordstrom
Chief Executive Officer (Principal Executive Officer)
|
$
|
708,591
|
|
|
$
|
758,500
|
|
Peter E. Nordstrom
President, Nordstrom Inc. and Chief Brand Officer
|
$
|
708,591
|
|
|
$
|
758,500
|
|
Anne L. Bramman
Chief Financial Officer (Principal Financial Officer)
|
$
|
564,500
|
|
|
$
|
800,000
|
|
Kenneth J. Worzel
Chief Operating Officer |
$
|
645,433
|
|
|
$
|
875,000
|
|
Christine F. Deputy
Chief Human Resources Officer |
$
|
338,700
|
|
|
$
|
625,000
|
|
|
Form of 2020 Nonqualified Stock Option Award Agreement
|
|
|
Form of 2020 Restricted Stock Unit Award Agreement
|
|
|
Form of 2020 Performance Share Unit Award Agreement
|
|
|
Nordstrom earnings release dated March 3, 2020 relating to the Company's results of operations for the quarter and year ended February 1, 2020, its financial position as of February 1, 2020, and its cash flows for the year ended February 1, 2020.
|
|
|
Press release of Nordstrom, Inc., dated February 27, 2020
|
|
|
Multimedia materials
|
|
104
|
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
NORDSTROM, INC.
|
|
(Registrant)
|
|
|
|
/s/ Ann Munson Steines
|
|
Ann Munson Steines
|
|
Executive Vice President,
|
|
General Counsel and Corporate Secretary
|
1.
|
OPTION EXERCISE PRICE
|
2.
|
VESTING AND EXERCISING OF OPTION
|
(a)
|
Method of Exercise. The Option shall be exercisable (only to the extent vested) by a written notice in a form prescribed by the Company that shall:
|
(i)
|
state the election to exercise the Option, the number of shares, the total option exercise price, and the name and address of the Optionee;
|
(ii)
|
be signed by the person entitled to exercise the Option; and
|
(iii)
|
be in writing and delivered to Nordstrom Compensation department, or any successor department, (either directly or through a broker).
|
(b)
|
Payment upon Exercise. Payment of the option exercise price for any shares with respect to which an Option is being exercised shall be by:
|
(i)
|
check or bank wire transfer, or
|
(ii)
|
giving an irrevocable direction for a broker approved by the Company to sell all or part of the Option shares and to deliver to the Company from the sale proceeds an amount sufficient to pay the option exercise price and any amount required to be withheld to meet the Company’s minimum statutory withholding requirements, including the employee’s share of payroll taxes. (The balance of the sale proceeds, if any, will be delivered to the Optionee.)
|
(c)
|
Restrictions on Exercise. The Option may not be exercised if the issuance of the shares upon such exercise would constitute a violation of any applicable federal or state securities or other law or valid regulation, or the Company’s Insider Trading Policy. As a condition to the exercise of the Option, the Company may require the person exercising the Option to make any representation and warranty to the Company as the Company’s counsel advises and as may be required by the Company or by any applicable law or regulation.
|
3.
|
ACCEPTANCE OF OPTION AND TERMS
|
4.
|
NONTRANSFERABILITY OF OPTION
|
5.
|
SEPARATION OF EMPLOYMENT
|
(a)
|
If the Optionee dies while employed by the Employer, the Option shall immediately vest and may be exercised during the period ending four years after the Optionee’s death. The recipient named on the beneficiary form, as designated by the Company, may exercise such rights. If no valid beneficiary form exists, then the person to whom the Optionee’s rights have passed by will or the laws of descent and distribution may exercise such rights. In no event may the Option be exercised more than 10 years from the date of grant.
|
(b)
|
If the Optionee is separated due to his or her disability, as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), and the Optionee provides Nordstrom Compensation department, or any successor department, with reasonable documentation of the Optionee’s disability, the Option shall immediately vest as of the date of such separation and may be exercised during the period ending four years after separation. In no event may the Option be exercised more than 10 years from the date of grant.
|
(c)
|
If the Optionee terminates employment after having met any of the requirements set forth below, and the Option was granted at least six months prior to the termination date, the Option shall continue to vest in accordance with the terms of the Notice and may be exercised during the period ending four years after separation notwithstanding such termination of employment:
|
(i)
|
the Optionee has attained age 55 with 10 continuous years of service to the Employer from the most recent hire date with the Employer; or
|
(d)
|
Notwithstanding subparagraphs (a), (b) and (c) of this section, the Optionee shall immediately forfeit any unvested and vested Options represented by this Award and any shares of Common Stock or proceeds from the sale of such shares of Common Stock, and the post-separation vesting and exercise rights of the Option set forth above shall cease immediately, if: (i) he or she is terminated by the Company or any of its subsidiaries for: embezzlement, theft of funds, fraud, violation of rules, regulations or policies, or any intentional harmful act or acts; or (ii) he or she at any time during the term of this Award directly or indirectly, either as an employee, employer, consultant, agent, principal, partner, shareholder, corporate officer, director or in any other capacity, with respect to the Company or any of its subsidiaries, engages or assists any third party in engaging in any competitive business, divulges any confidential or proprietary information to a third party who is not authorized to receive the confidential or proprietary information, or improperly uses any confidential or proprietary information.
|
6.
|
TERM OF OPTION
|
7.
|
ADJUSTMENTS UPON CHANGES IN CAPITALIZATION
|
8.
|
ADDITIONAL OPTIONS
|
9.
|
LEAVES OF ABSENCE
|
10.
|
TAX WITHHOLDING
|
11.
|
INDEPENDENT TAX ADVICE
|
12.
|
RIGHTS AS A SHAREHOLDER
|
13.
|
NO RETENTION RIGHTS
|
14.
|
CLAWBACK POLICY
|
15.
|
ENTIRE AGREEMENT
|
1.
|
VESTING AND CONVERSION OF UNITS
|
2.
|
ACCEPTANCE OF UNITS AND TERMS
|
3.
|
NONTRANSFERABILITY OF UNITS
|
4.
|
SEPARATION OF EMPLOYMENT
|
(a)
|
If the Unit holder dies while employed by the Employer, any Units represented by the Award shall immediately vest as of the date of the Unit holder’s death and be delivered as Common Stock promptly thereafter. Shares shall be issued in the name of the person identified on the Unit holder’s beneficiary form, as designated by the Company. If no valid beneficiary form exists, then the Common Stock delivered pursuant to the preceding sentence shall be issued in the name of the person to whom the Unit holder’s rights under this Award Agreement have passed by will or the laws of descent and distribution.
|
(b)
|
If the Unit holder is separated due to his or her disability, as defined in Section 22(e)(3) of the Code and the Unit holder provides Nordstrom Compensation department, or any successor department, with reasonable documentation of his or her disability, any Units represented by this Award shall immediately vest as of the date of such separation and be delivered as Common Stock promptly thereafter.
|
(c)
|
If the Unit holder terminates employment after having met any of the requirements set forth below, and the Units were granted at least six months prior to the termination date, the Units shall continue to vest in accordance with the terms of the Notice, notwithstanding such termination of employment:
|
(i)
|
the Unit holder has attained age 55 with 10 continuous years of service to the Employer from the most recent hire date with the Employer; or
|
(ii)
|
the Unit holder has attained age 65.
|
(d)
|
Notwithstanding subparagraphs (a), (b) and (c) of this section, a Unit holder shall immediately forfeit any unvested and unsettled Units represented by this Award and any shares of Common Stock or proceeds from the sale of such shares of Common Stock, and
|
(e)
|
Except as otherwise provided in the Plan with respect to a change in Control, if the Unit holder is separated for any reason other than those set forth in subparagraphs (a), (b), (c) or (d) above, then all Units represented by this Award shall be forfeited as of the date of the Unit holder’s separation.
|
6.
|
NO DIVIDEND RIGHTS
|
7.
|
ADDITIONAL UNITS
|
8.
|
LEAVES OF ABSENCE
|
9.
|
TAX WITHHOLDING
|
10.
|
INDEPENDENT TAX ADVICE
|
11.
|
RIGHTS AS A SHAREHOLDER
|
12.
|
NO RETENTION RIGHTS
|
13.
|
CLAWBACK POLICY
|
14.
|
ENTIRE AGREEMENT
|
15.
|
CHOICE OF LAW
|
16.
|
SEVERABILITY
|
17.
|
CODE SECTION 409A
|
1.
|
VESTING AND SETTLEMENT OF UNITS
|
(a)
|
Vesting
|
(b)
|
Settlement
|
(c)
|
Withholding Taxes
|
(d)
|
Restrictions on Resale
|
2.
|
ACCEPTANCE OF UNITS AND TERMS
|
3.
|
NONTRANSFERABILITY OF UNITS
|
4.
|
SEPARATION OF EMPLOYMENT
|
(a)
|
If the Unit holder dies while employed by the Employer, a prorated number of Units represented by the Award shall immediately vest at a one-hundred percent (100%) payout percentage, based on the number of full months the Unit holder was employed during the term of this Award Agreement, as of the date of the Unit holder’s death and be delivered in Common Stock promptly thereafter to the person named on the Unit holder’s beneficiary form, as designated by the Company. If no valid beneficiary form exists, then the Common Stock delivered pursuant to the preceding sentence shall be issued to the person to whom the Unit holder’s rights have passed by will or the laws of descent and distribution. If the Units were granted less than one month prior to death, the Units shall be forfeited as of the date of death with no rights to a prorated distribution at settlement.
|
(b)
|
If the Unit holder is separated due to his or her disability, as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), and the Unit holder provides Nordstrom Compensation department, or any successor department, with reasonable documentation of his or her disability, a prorated number of Units represented by the Award shall immediately vest at a one-hundred percent (100%) payout percentage, based on the number of full months the Unit holder was employed during the term of this Award Agreement, as of the date of such separation and be delivered in Common Stock promptly thereafter. If the Units were granted less than one month prior to separation due to the Unit holder’s disability, the Units shall be forfeited as of the date of separation with no rights to a prorated distribution at settlement.
|
(c)
|
If the Unit holder terminates employment after having met any of the requirements set forth below, and the Units were granted at least six months prior to the termination date, the Unit holder shall be entitled to a prorated distribution, based on the number of full months the Unit holder was employed, with respect to vested Units during the term of this Award:
|
(d)
|
Notwithstanding subparagraphs (a), (b) and (c) of this section, a Unit holder shall immediately forfeit any unvested and unsettled Units represented by this Award and any shares of Common Stock or proceeds from the sale of such shares of Common Stock, and the post-separation proration of Units and settlement rights set forth above shall cease immediately, if: (i) he or she is terminated by the Company or any of its subsidiaries for embezzlement, theft of funds, fraud, violation of rules, regulations or policies, or any intentional harmful act or acts; or (ii) he or she directly or indirectly at any time during the term of this Award, either as an employee, employer, consultant, agent, principal, partner, shareholder, corporate officer, director or in any other capacity, with respect to the Company or any of its subsidiaries, engages or assists any third party in engaging in any competitive business, divulges any confidential or proprietary information to a third party who is not authorized to receive the confidential or proprietary information, or improperly uses any confidential or proprietary information.
|
(e)
|
Except as otherwise provided in the Plan with respect to a Change in Control, if the Unit holder is separated for any reason other than those set forth in subparagraphs (a), (b), (c) and (d) above, Units, to the extent not vested and settled as of the date of his or her separation, shall be forfeited as of that date.
|
5.
|
TERM OF UNITS
|
6.
|
ADJUSTMENTS TO PERFORMANCE GOALS
|
7.
|
ADJUSTMENTS UPON CHANGES IN CAPITALIZATION
|
8.
|
NO DIVIDEND RIGHTS
|
9.
|
ADDITIONAL UNITS
|
10.
|
LEAVES OF ABSENCE
|
11.
|
INDEPENDENT TAX ADVICE
|
12.
|
RIGHTS AS A SHAREHOLDER
|
13.
|
NO RETENTION RIGHTS
|
14.
|
CLAWBACK POLICY
|
15.
|
DEFERRAL OF UNITS
|
16.
|
ENTIRE AGREEMENT
|
17.
|
CHOICE OF LAW
|
18.
|
SEVERABILITY
|
19.
|
CODE SECTION 409A
|
FOR RELEASE:
|
|
INVESTOR CONTACT:
|
|
Trina Schurman
|
March 3, 2020 at 1:05 PM PST
|
|
|
Nordstrom, Inc.
|
|
|
|
|
|
(206) 303-6503
|
|
|
|
|
|
|
|
MEDIA CONTACT:
|
|
Gigi Ganatra Duff
|
|
|
|
|
Nordstrom, Inc.
|
|
|
|
|
(206) 303-3030
|
•
|
Expanding to five additional markets — Philadelphia, Washington D.C., Boston, Seattle, and Toronto — for a total of 10 markets, which represent more than half of the Company’s sales
|
•
|
Adding convenience with additional Nordstrom Local service hubs in addition to express services of order pickup, returns and alterations at more than 50 Nordstrom Racks
|
•
|
Launching dedicated e-commerce in Canada to enable a seamless shopping experience across stores and online
|
•
|
Ramping its supply chain network to ultimately improve delivery speed on the West Coast, which represents 40 percent of customers
|
•
|
Integrating Trunk Club into Nordstrom full-line stores and Nordstrom.com to create a cohesive styling offering across Nordstrom and to gain efficiencies.
|
•
|
Fourth quarter net earnings were $193 million compared with $248 million during the same period in fiscal 2018. Fiscal 2019 included $29 million of charges, after tax, primarily representing non-cash asset write-downs resulting from the integration of Trunk Club in addition to debt refinancing costs.
|
•
|
Earnings before interest and taxes (“EBIT”) was $299 million, or 6.7 percent of net sales, compared with $333 million, or 7.6 percent of net sales for the same period in fiscal 2018. Excluding integration charges of $32 million, EBIT margin slightly decreased compared to prior year.
|
•
|
In Full-Price, net sales increased 1.0 percent. In Off-Price, net sales increased 1.8 percent. Digital sales grew 9 percent and represented 35 percent of sales. Online order pickup contributed more than half of digital sales growth in Full-Price.
|
•
|
Gross profit, as a percentage of net sales, of 35 percent decreased 9 basis points compared with the same period in fiscal 2018. This was primarily due to higher costs from growth of the loyalty program and planned occupancy costs related to the NYC flagship store, partially offset by increased merchandise margins. Ending inventory decreased 2.9 percent from last year, marking four consecutive quarters of sales growing faster than inventory.
|
•
|
Selling, general and administrative (“SG&A”) expenses, as a percentage of net sales, of 30.5 percent increased 70 basis points compared with the same period in fiscal 2018. Excluding integration charges, SG&A rate was flat, reflecting realized expense savings of approximately $55 million from ongoing productivity initiatives.
|
•
|
Full year net earnings were $496 million compared with $564 million for fiscal 2018. Fiscal 2019 included integration charges and debt refinancing costs of $29 million, after tax. Fiscal 2018 net earnings included a credit-related charge of $49 million, after tax.
|
•
|
EBIT was $784 million, or 5.2 percent of net sales, compared with $837 million, or 5.4 percent of net sales, for fiscal 2018. Excluding integration charges of $32 million in 2019 and credit-related charges of $72 million in 2018, EBIT margin deleveraged by approximately 50 basis points.
|
•
|
In Full-Price, net sales decreased 3.5 percent. In Off-Price, net sales increased 0.2 percent. Nordstrom successfully executed plans to improve sales trends during the year through loyalty, digital marketing and merchandising initiatives. Digital sales grew 7 percent and represented 33 percent of sales.
|
•
|
Gross profit, as a percentage of net sales, of 34.4 percent was flat compared with fiscal 2018. This reflected increased merchandise margins, offset by higher costs from growth in the loyalty program and planned occupancy costs related to the NYC flagship store.
|
•
|
SG&A expenses, as a percentage of net sales, of 31.8 percent increased 32 basis points compared with fiscal 2018. Excluding integration charges in 2019 and a credit-related charge in 2018, SG&A rate increased by approximately 60 basis points, driven by deleverage of fixed costs from lower volume. Nordstrom achieved annual expense savings of $225 million, exceeding the high end of its plan by more than 10 percent and contributing to a reduction in expense dollars relative to last year.
|
•
|
Operating cash flow was in excess of $1 billion for the eleventh consecutive year.
|
•
|
The Company’s debt leverage ratio, excluding charges, was in-line with expectations.
|
•
|
During the year, the Company repurchased 4.1 million shares of its common stock for $186 million. A total capacity of $707 million remains available under its existing share repurchase authorization.
|
Net sales
|
1.5 to 2.5 percent increase
|
Credit card revenues, net
|
Mid-single-digit growth
|
EBIT
|
$815 to $855 million
|
EBIT margin
|
5.3 to 5.5 percent
|
Earnings per diluted share (assuming impact of future share repurchases)
|
$3.25 to $3.50
|
•
|
increase in free cash flow of approximately 2.5 times relative to fiscal 2019
|
•
|
capital expenditures of approximately 4 percent of sales
|
•
|
interest expense, net of approximately $120 million
|
•
|
effective tax rate of approximately 27 percent
|
•
|
earnings per diluted share outlook assumes impact of future share repurchases between $300 million to $400 million. The actual timing, price, manner and amounts of future share repurchases, if any, will be subject to market and economic conditions and applicable Securities and Exchange Commission (“SEC”) rules.
|
Location
|
|
Store Name
|
|
Square
Footage
(000’s)
|
|
Timing
|
|
|
|
|
|
|
|
Off-Price
|
|
|
|
|
|
|
Langley, British Columbia
|
|
Willowbrook Shopping Centre
|
|
30
|
|
Spring
|
Tacoma, Washington
|
|
Tacoma Mall
|
|
30
|
|
Fall
|
Number of stores
|
February 1, 2020
|
|
February 2, 2019
|
Full-Price
|
|
|
|
U.S. — Nordstrom full-line
|
110
|
|
115
|
Canada — Nordstrom full-line
|
6
|
|
6
|
Canada — Nordstrom Rack
|
6
|
|
6
|
Other Full-Price1
|
14
|
|
12
|
Off-Price
|
|
|
|
U.S. — Nordstrom Rack
|
242
|
|
238
|
Last Chance clearance stores
|
2
|
|
2
|
Total
|
380
|
|
379
|
1 Other Full-Price includes Trunk Club clubhouses, Jeffrey boutiques and Nordstrom Local service hubs.
|
|||
|
|
|
|
Gross square footage
|
30,198,000
|
|
30,385,000
|
|
Quarter Ended
|
|
Year Ended
|
||||||||||||
|
February 1, 2020
|
|
February 2, 2019
|
|
February 1, 2020
|
|
February 2, 2019
|
||||||||
Net sales
|
$
|
4,439
|
|
|
$
|
4,383
|
|
|
$
|
15,132
|
|
|
$
|
15,480
|
|
Credit card revenues, net
|
99
|
|
|
101
|
|
|
392
|
|
|
380
|
|
||||
Total revenues
|
4,538
|
|
|
4,484
|
|
|
15,524
|
|
|
15,860
|
|
||||
Cost of sales and related buying and occupancy costs
|
(2,884
|
)
|
|
(2,843
|
)
|
|
(9,932
|
)
|
|
(10,155
|
)
|
||||
Selling, general and administrative expenses
|
(1,355
|
)
|
|
(1,308
|
)
|
|
(4,808
|
)
|
|
(4,868
|
)
|
||||
Earnings before interest and income taxes1
|
299
|
|
|
333
|
|
|
784
|
|
|
837
|
|
||||
Interest expense, net1
|
(36
|
)
|
|
(23
|
)
|
|
(102
|
)
|
|
(104
|
)
|
||||
Earnings before income taxes
|
263
|
|
|
310
|
|
|
682
|
|
|
733
|
|
||||
Income tax expense
|
(70
|
)
|
|
(62
|
)
|
|
(186
|
)
|
|
(169
|
)
|
||||
Net earnings1
|
$
|
193
|
|
|
$
|
248
|
|
|
$
|
496
|
|
|
$
|
564
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.24
|
|
|
$
|
1.50
|
|
|
$
|
3.20
|
|
|
$
|
3.37
|
|
Diluted1
|
$
|
1.23
|
|
|
$
|
1.48
|
|
|
$
|
3.18
|
|
|
$
|
3.32
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
155.5
|
|
|
164.8
|
|
|
155.2
|
|
|
167.3
|
|
||||
Diluted
|
156.6
|
|
|
167.1
|
|
|
156.1
|
|
|
170.0
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Percent of net sales:
|
|
|
|
|
|
|
|
||||||||
Gross profit
|
35.0
|
%
|
|
35.1
|
%
|
|
34.4
|
%
|
|
34.4
|
%
|
||||
Selling, general and administrative expenses
|
30.5
|
%
|
|
29.8
|
%
|
|
31.8
|
%
|
|
31.5
|
%
|
||||
Earnings before interest and income taxes
|
6.7
|
%
|
|
7.6
|
%
|
|
5.2
|
%
|
|
5.4
|
%
|
|
February 1, 2020
|
|
February 2, 2019
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
853
|
|
|
$
|
957
|
|
Accounts receivable, net
|
179
|
|
|
148
|
|
||
Merchandise inventories
|
1,920
|
|
|
1,978
|
|
||
Prepaid expenses and other
|
278
|
|
|
291
|
|
||
Total current assets
|
3,230
|
|
|
3,374
|
|
||
|
|
|
|
||||
Land, property and equipment, net
|
4,179
|
|
|
3,921
|
|
||
Operating lease right-of-use assets
|
1,774
|
|
|
—
|
|
||
Goodwill
|
249
|
|
|
249
|
|
||
Other assets
|
305
|
|
|
342
|
|
||
Total assets
|
$
|
9,737
|
|
|
$
|
7,886
|
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
1,576
|
|
|
$
|
1,469
|
|
Accrued salaries, wages and related benefits
|
510
|
|
|
580
|
|
||
Current portion of operating lease liabilities
|
244
|
|
|
—
|
|
||
Other current liabilities
|
1,190
|
|
|
1,324
|
|
||
Current portion of long-term debt
|
—
|
|
|
8
|
|
||
Total current liabilities
|
3,520
|
|
|
3,381
|
|
||
|
|
|
|
||||
Long-term debt, net
|
2,676
|
|
|
2,677
|
|
||
Deferred property incentives, net
|
4
|
|
|
457
|
|
||
Non-current operating lease liabilities
|
1,875
|
|
|
—
|
|
||
Other liabilities
|
683
|
|
|
498
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
||||
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Common stock, no par value: 1,000 shares authorized; 155.6 and 157.6 shares issued and outstanding
|
3,129
|
|
|
3,048
|
|
||
Accumulated deficit
|
(2,082
|
)
|
|
(2,138
|
)
|
||
Accumulated other comprehensive loss
|
(68
|
)
|
|
(37
|
)
|
||
Total shareholders’ equity
|
979
|
|
|
873
|
|
||
Total liabilities and shareholders’ equity
|
$
|
9,737
|
|
|
$
|
7,886
|
|
|
Year Ended
|
||||||
|
February 1, 2020
|
|
February 2, 2019
|
||||
Operating Activities
|
|
|
|
||||
Net earnings
|
$
|
496
|
|
|
$
|
564
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization expenses and other, net
|
671
|
|
|
669
|
|
||
Amortization of deferred property incentives
|
—
|
|
|
(75
|
)
|
||
Right-of-use asset amortization
|
183
|
|
|
—
|
|
||
Deferred income taxes, net
|
52
|
|
|
(34
|
)
|
||
Stock-based compensation expense
|
69
|
|
|
90
|
|
||
Change in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
82
|
|
|
(4
|
)
|
||
Merchandise inventories
|
30
|
|
|
15
|
|
||
Prepaid expenses and other assets
|
(38
|
)
|
|
(8
|
)
|
||
Accounts payable
|
98
|
|
|
12
|
|
||
Accrued salaries, wages and related benefits
|
(71
|
)
|
|
1
|
|
||
Other current liabilities
|
(94
|
)
|
|
15
|
|
||
Deferred property incentives
|
6
|
|
|
53
|
|
||
Lease liabilities
|
(259
|
)
|
|
—
|
|
||
Other liabilities
|
11
|
|
|
(2
|
)
|
||
Net cash provided by operating activities
|
1,236
|
|
|
1,296
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Capital expenditures
|
(935
|
)
|
|
(654
|
)
|
||
Other, net
|
26
|
|
|
1
|
|
||
Net cash used in investing activities
|
(909
|
)
|
|
(653
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
||||
Proceeds from long-term borrowings, net of discounts
|
499
|
|
|
—
|
|
||
Principal payments on long-term borrowings
|
(500
|
)
|
|
(56
|
)
|
||
Increase in cash book overdrafts
|
8
|
|
|
—
|
|
||
Cash dividends paid
|
(229
|
)
|
|
(250
|
)
|
||
Payments for repurchase of common stock
|
(210
|
)
|
|
(678
|
)
|
||
Proceeds from issuances under stock compensation plans
|
29
|
|
|
163
|
|
||
Tax withholding on share-based awards
|
(17
|
)
|
|
(20
|
)
|
||
Other, net
|
(11
|
)
|
|
(26
|
)
|
||
Net cash used in financing activities
|
(431
|
)
|
|
(867
|
)
|
||
|
|
|
|
||||
Net decrease in cash and cash equivalents
|
(104
|
)
|
|
(224
|
)
|
||
Cash and cash equivalents at beginning of year
|
957
|
|
|
1,181
|
|
||
Cash and cash equivalents at end of year
|
$
|
853
|
|
|
$
|
957
|
|
|
Quarter Ended
|
|
Year Ended
|
||||||||||||
|
February 1, 2020
|
|
February 2, 2019
|
|
February 1, 2020
|
|
February 2, 2019
|
||||||||
Net sales by business:
|
|
|
|
|
|
|
|
||||||||
Full-Price
|
$
|
3,015
|
|
|
$
|
2,985
|
|
|
$
|
9,943
|
|
|
$
|
10,299
|
|
Off-Price
|
1,424
|
|
|
1,398
|
|
|
5,189
|
|
|
5,181
|
|
||||
Total net sales
|
$
|
4,439
|
|
|
$
|
4,383
|
|
|
$
|
15,132
|
|
|
$
|
15,480
|
|
|
|
|
|
|
|
|
|
||||||||
Net sales increase (decrease) by business:
|
|
|
|
|
|
|
|
||||||||
Full-Price1
|
1.0
|
%
|
|
(8.8
|
%)
|
|
(3.5
|
%)
|
|
(1.5
|
%)
|
||||
Off-Price2
|
1.8
|
%
|
|
(2.7
|
%)
|
|
0.2
|
%
|
|
4.5
|
%
|
||||
Total Company3
|
1.3
|
%
|
|
(4.7
|
%)
|
|
(2.2
|
%)
|
|
2.3
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Digital sales as % of total net sales4
|
35
|
%
|
|
33
|
%
|
|
33
|
%
|
|
30
|
%
|
|
Four Quarters Ended
|
||||||
|
February 1, 2020
|
|
February 2, 2019
|
||||
Net earnings
|
$
|
496
|
|
|
$
|
564
|
|
Add: income tax expense
|
186
|
|
|
169
|
|
||
Add: interest expense
|
112
|
|
|
119
|
|
||
Earnings before interest and income tax expense
|
794
|
|
|
852
|
|
||
|
|
|
|
||||
Add: operating lease interest1
|
101
|
|
|
—
|
|
||
Add: rent expense, net
|
—
|
|
|
251
|
|
||
Less: estimated depreciation on capitalized operating leases2
|
—
|
|
|
(134
|
)
|
||
Adjusted net operating profit
|
895
|
|
|
969
|
|
||
|
|
|
|
||||
Less: estimated income tax expense
|
(244
|
)
|
|
(223
|
)
|
||
Adjusted net operating profit after tax
|
$
|
651
|
|
|
$
|
746
|
|
|
|
|
|
||||
Average total assets
|
$
|
9,765
|
|
|
$
|
8,282
|
|
Add: average estimated asset base of capitalized operating leases2
|
—
|
|
|
2,018
|
|
||
Less: average deferred property incentives and deferred rent liability
|
—
|
|
|
(616
|
)
|
||
Less: average deferred property incentives in excess of ROU assets3
|
(307
|
)
|
|
—
|
|
||
Less: average non-interest-bearing current liabilities
|
(3,439
|
)
|
|
(3,479
|
)
|
||
Average invested capital
|
$
|
6,019
|
|
|
$
|
6,205
|
|
|
|
|
|
||||
Return on assets4,5
|
5.1
|
%
|
|
6.8
|
%
|
||
Adjusted ROIC4,5
|
10.8
|
%
|
|
12.0
|
%
|
|
20191
|
|
20181
|
||||
Debt
|
$
|
2,676
|
|
|
$
|
2,685
|
|
Add: operating lease liabilities
|
2,119
|
|
|
—
|
|
||
Add: estimated capitalized operating lease liability2
|
—
|
|
|
2,009
|
|
||
Adjusted Debt
|
$
|
4,795
|
|
|
$
|
4,694
|
|
|
|
|
|
||||
Net earnings
|
$
|
496
|
|
|
$
|
564
|
|
Add: income tax expense
|
186
|
|
|
169
|
|
||
Add: interest expense, net
|
102
|
|
|
104
|
|
||
Earnings before interest and income taxes
|
784
|
|
|
837
|
|
||
|
|
|
|
||||
Add: depreciation and amortization expenses
|
671
|
|
|
669
|
|
||
Add: lease costs, net3
|
274
|
|
|
—
|
|
||
Add: rent expense, net
|
—
|
|
|
251
|
|
||
Adjusted EBITDAR
|
$
|
1,729
|
|
|
$
|
1,757
|
|
|
|
|
|
||||
Debt to Net Earnings4
|
5.4
|
|
|
4.8
|
|
||
Adjusted Debt to EBITDAR4
|
2.8
|
|
|
2.7
|
|
|
Year Ended
|
||||||
|
February 1, 2020
|
|
February 2, 2019
|
||||
Net cash provided by operating activities
|
$
|
1,236
|
|
|
$
|
1,296
|
|
Less: capital expenditures1
|
(935
|
)
|
|
(654
|
)
|
||
Add: change in cash book overdrafts
|
8
|
|
|
—
|
|
||
Free Cash Flow
|
$
|
309
|
|
|
$
|
642
|
|
|
Year Ended
|
||||||
|
February 1, 2020
|
|
February 2, 2019
|
||||
Net earnings
|
$
|
496
|
|
|
$
|
564
|
|
Add: income tax expense
|
186
|
|
|
169
|
|
||
Add: interest expense, net
|
102
|
|
|
104
|
|
||
Earnings before interest and income taxes
|
784
|
|
|
837
|
|
||
|
|
|
|
||||
Add: depreciation and amortization expenses
|
671
|
|
|
669
|
|
||
Less: amortization of developer reimbursements
|
(75
|
)
|
|
(79
|
)
|
||
Adjusted EBITDA
|
$
|
1,380
|
|
|
$
|
1,427
|
|
ISSUE RELEASE:
|
|
INVESTOR CONTACT:
|
|
Trina Schurman
|
Hold for Call
|
|
|
Nordstrom, Inc.
|
|
|
|
|
|
206-303-6503
|
|
|
|
|
|
|
|
MEDIA CONTACT:
|
|
Gigi Ganatra Duff
|
|
|
|
|
Nordstrom, Inc.
|
|
|
|
|
(206) 303-3030
|