-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Rwr6deOotlyZM54guvvPaH7jj5DaVYdTllEBdWSkkN7GQQelA5mU9q261bkGkZM5 eC/3HEHPyNJqdvx9bJbX+g== 0000072333-06-000115.txt : 20060518 0000072333-06-000115.hdr.sgml : 20060518 20060518161540 ACCESSION NUMBER: 0000072333-06-000115 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060518 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060518 DATE AS OF CHANGE: 20060518 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORDSTROM INC CENTRAL INDEX KEY: 0000072333 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-FAMILY CLOTHING STORES [5651] IRS NUMBER: 910515058 STATE OF INCORPORATION: WA FISCAL YEAR END: 0128 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15059 FILM NUMBER: 06852317 BUSINESS ADDRESS: STREET 1: 1700 SEVENTH AVENUE STREET 2: SUITE 1300 CITY: SEATTLE STATE: WA ZIP: 98101-4407 BUSINESS PHONE: 2066282111 MAIL ADDRESS: STREET 1: PO BOX 1770 CITY: SEATTLE STATE: WA ZIP: 98111 FORMER COMPANY: FORMER CONFORMED NAME: NORDSTROM BEST INC DATE OF NAME CHANGE: 19730611 8-K 1 ni8k051806.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) May 18, 2006 NORDSTROM, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) WASHINGTON 001-15059 91-0515058 (STATE OR OTHER JURISDICTION (COMMISSION FILE (I.R.S. EMPLOYER OF INCORPORATION) NUMBER) IDENTIFICATION NO.) 1617 SIXTH AVENUE, SEATTLE, WASHINGTON 98101 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (206) 628-2111 INAPPLICABLE (FORMER NAME OR FORMER ADDRESS IF CHANGED SINCE LAST REPORT) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below): ___ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ___ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ___ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ___ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 Results of Operations and Financial Condition On May 18, 2006, Nordstrom, Inc. issued an earnings release announcing its results of operations for the quarter ended April 29, 2006, its financial position as of April 29, 2006, and its cash flows for the quarter ended April 29, 2006. A copy of this earnings release is attached as Exhibit 99.1. ITEM 7.01 Regulation FD Disclosure On May 18, 2006, Nordstrom, Inc. issued an earnings release announcing its results of operations for the quarter ended April 29, 2006, its financial position as of April 29, 2006, and its cash flows for the quarter ended April 29, 2006. A copy of this earnings release is attached as Exhibit 99.1. ITEM 9.01 Financial Statements and Exhibits 99.1 Nordstrom earnings release dated May 18, 2006 relating to the Company's results of operations for the quarter ended April 29, 2006, its financial position as of April 29, 2006, and its cash flows for the quarter ended April 29, 2006. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NORDSTROM, INC. By: /s/ Michael G. Koppel ----------------------- Michael G. Koppel Executive Vice President and Chief Financial Officer Dated: May 18, 2006 EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION 99.1 Nordstrom earnings release dated May 18, 2006 relating to the Company's results of operations for the quarter ended April 29, 2006, its financial position as of April 29, 2006, and its cash flows for the quarter ended April 29, 2006. EX-99 2 niex991051806.txt For Immediate Release - --------------------- May 18, 2006 NORDSTROM REPORTS FIRST QUARTER EARNINGS PER SHARE OF 48 CENTS SEATTLE - May 18, 2006 - Nordstrom, Inc. (NYSE: JWN) today reported net earnings of $131.2 million, or $0.48 per diluted share, for the first quarter ended April 29, 2006. For the same period last year, net earnings and earnings per diluted share were $104.5 million and $0.38, respectively. Total sales for the first quarter of 2006 increased 8.0 percent to $1.8 billion, compared to sales of $1.7 billion in the same period last year. First quarter same-store sales increased 5.4 percent. FIRST QUARTER HIGHLIGHTS Net earnings increased 25.5 percent in the first quarter compared to the same quarter last year, reflecting continued progress in merchandise execution, inventory management and expense control. The company remains committed to providing a superior shopping experience and achieving long-term profitable growth. - Same-store sales increased 5.4 percent for the quarter, higher than the company's one to three percent same-store sales guidance. Merchandise divisions with performance above the company's average were accessories, cosmetics and men's apparel. - Gross profit, as a percent of sales, increased 40 basis points. Better than plan sales resulted in incremental leverage on buying and occupancy expenses, while overall merchandise margin remained flat versus last year. - The same-store sales increase combined with expense control resulted in a 48 basis point reduction in selling, general and administrative expenses on a percent to sales basis. For the quarter, fixed expenses were maintained at or below budgeted levels. - We adopted SFAS No. 123(R), "Share-Based Payment," and as a result we recorded compensation expense of $2.7 million in buying and occupancy costs and $4.4 million in selling, general and administrative expenses. EXPANSION UPDATE During the first quarter Nordstrom opened one full-line store in Palm Beach Gardens, Florida at the Gardens Mall on March 10th. SHARE REPURCHASE Nordstrom repurchased approximately 5.3 million shares of its common stock during the first quarter for $212.9 million. This reduction in weighted- average shares outstanding had no material impact on diluted earnings per share for the quarter. QUARTERLY DIVIDEND The company's board of directors has approved a quarterly dividend of $0.105 per share, payable on June 15, 2006, to shareholders of record on May 31, 2006. 2006 OUTLOOK For the fiscal year ending February 3, 2007, the company anticipates diluted earnings per share in the range of $2.24 to $2.32, which includes an estimated expense of $0.06 per diluted share from the adoption of SFAS No. 123(R) regarding expensing of stock options. For the second quarter, the company expects low single digit same-store sales growth and earnings per share in the range of $0.59 to $0.64. CONFERENCE CALL INFORMATION: Company management will be hosting a conference call and webcast to discuss first quarter results at 4:15 p.m. (ET) today. Access to the conference call is open to the press and general public in a listen only mode. To participate, please dial 212-547-0138 ten minutes prior to the call (passcode: NORD). A telephone replay will be available for 48 hours beginning approximately one hour after the conclusion of the call by dialing 866-463- 4967. Interested parties may also access the call over the Internet by visiting the Investor Relations section of the company's corporate website at http://about.nordstrom.com/aboutus/investor/webcasts.asp. An archived version of the webcast will be available at this location for 30 days. Nordstrom, Inc. is one of the nation's leading fashion specialty retailers, with 156 US stores located in 27 states. Founded in 1901 as a shoe store in Seattle, today Nordstrom operates 99 full-line stores, 49 Nordstrom Racks, five Faconnable boutiques, one free-standing shoe store, and two clearance stores. Nordstrom also operates 34 international Faconnable boutiques in Europe. Additionally, Nordstrom serves customers through its online presence at http://www.nordstrom.com and through its catalogs. Nordstrom, Inc. is publicly traded on the NYSE under the symbol JWN. Certain statements in this news release contain "forward-looking" information (as defined in the Private Securities Litigation Reform Act of 1995) that involves risks and uncertainties, including anticipated results for the fiscal year ending February 3, 2007 and the second quarter, store openings and trends in company operations. Actual future results and trends may differ materially from historical results or current expectations depending upon factors including, but not limited to, the impact of economic and competitive market forces, the impact of terrorist activity or the impact of a war on the company, its customers and the retail industry, the company's ability to predict fashion trends, consumer apparel buying patterns, trends in personal bankruptcies and bad debt write-offs, changes in interest rates, employee relations, the company's ability to continue its expansion plans, changes in government or regulatory requirements, the company's ability to control costs, weather conditions and hazards of nature. Our SEC reports, including our Form 10-K for the fiscal year ended January 28, 2006 and our Form 10-Q for the quarter ended April 29, 2006 to be filed with the SEC, contain other information on these and other factors that could affect our financial results and cause actual results to differ materially from any forward-looking information we may provide. The company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances. Investor Contact: Media Contact: RJ Jones, 206-303-3007 Deniz Anders, 206-373-3038 NORDSTROM, INC. CONSOLIDATED STATEMENTS OF EARNINGS - 1st Quarter ----------------------------------------------------- (unaudited; amounts in thousands, except per share data and percentages)
Quarter % of sales (1) Quarter % of sales1 Ended (except as ended (except as 4/29/06 indicated) 4/30/05 indicated) -------- ---------- -------- --------- - - Net sales $1,787,223 100.0% $1,654,474 100.0% Cost of sales and related buying & occupancy costs (1,123,003) (62.8%) (1,046,165) (63.2%) --------- --------- Gross profit 664,220 37.2% 608,309 36.8% Selling, general and administrative expenses (494,220) (27.7%) (465,422) (28.1%) --------- --------- Operating income 170,000 9.5% 142,887 8.6% Interest expense, net (10,751) (0.6%) (12,639) (0.8%) Other income including finance charges, net 53,838 3.0% 42,732 2.6% --------- --------- Earnings before income tax expense 213,087 11.9% 172,980 10.5% Income tax expense (81,856) (38.4%) (2) (68,442) (39.6%) (2) --------- --------- Net earnings $131,231 7.3% $104,538 6.3% ========= ========= Earnings per share Basic $0.49 $0.38 Diluted $0.48 $0.38
ADDITIONAL DATA - ---------------
Weighted average shares outstanding Basic 267,490 273,070 Diluted 272,831 278,395
(1) Subtotals and totals may not foot due to rounding. (2) Percent of earnings before income taxes. NORDSTROM, INC. CONSOLIDATED BALANCE SHEETS ----------------------------------------------------- (unaudited; amounts in thousands)
4/29/06 1/28/06 4/30/05 ---------- ---------- ---------- Assets Current assets: Cash and cash equivalents $ 261,326 $ 462,656 $ 315,695 Short-term investments 30,000 54,000 53,750 Accounts receivable, net 619,095 639,558 629,788 Investment in asset backed securities 565,854 561,136 427,302 Merchandise inventories 1,078,750 955,978 1,016,640 Current deferred tax assets 161,001 145,470 114,127 Prepaid expenses and other 56,982 55,359 53,934 ---------- ---------- ---------- Total current assets 2,773,008 2,874,157 2,611,236 Land, buildings and equipment, net 1,748,399 1,773,871 1,763,766 Goodwill 51,714 51,714 51,714 Acquired tradename 84,000 84,000 84,000 Other assets 129,518 137,607 108,891 ---------- ---------- ---------- Total assets $ 4,786,639 $ 4,921,349 $ 4,619,607 ========== ========== ========== Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 638,983 $ 540,019 $ 582,381 Accrued salaries, wages and related benefits 174,300 285,982 172,167 Other current liabilities 372,446 409,076 336,246 Income taxes payable 59,978 81,617 45,181 Current portion of long-term debt 306,636 306,618 100,458 ---------- ---------- ---------- Total current liabilities 1,552,343 1,623,312 1,236,433 Long-term debt, net 624,949 627,776 928,175 Deferred property incentives, net 361,446 364,382 357,694 Other liabilities 219,477 213,198 204,353 Shareholders' equity: Common stock, no par value: 1,000,000 shares authorized; 265,741, 269,549 and 273,265 shares issued and outstanding 733,663 685,934 619,640 Unearned stock compensation - (327) (593) Retained earnings 1,294,351 1,404,366 1,266,337 Accumulated other comprehensive earnings 410 2,708 7,568 ---------- ---------- ---------- Total shareholders' equity 2,028,424 2,092,681 1,892,952 ---------- ---------- ---------- Total liabilities and shareholders' equity $ 4,786,639 $ 4,921,349 $ 4,619,607 ========== ========== ==========
NORDSTROM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS ----------------------------------------------------- (unaudited; amounts in thousands)
Quarter Quarter Ended Ended 4/29/06 4/30/05 ---------- --------- Operating Activities Net earnings $ 131,231 $ 104,538 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization of buildings and equipment 70,425 69,204 Amortization of deferred property incentives and other, net (8,677) (6,903) Stock-based compensation expense 7,336 1,428 Deferred income taxes, net (7,395) 19,610 Tax benefit of stock option exercises and employee stock purchases 13,538 16,546 Excess tax benefits from stock-based payments (11,617) - Provision for bad debt 2,650 5,118 Change in operating assets and liabilities: Accounts receivable 17,834 10,578 Investment in asset backed securities (7,927) (9,210) Merchandise inventories (109,648) (99,065) Prepaid expenses (1,410) 666 Other assets (572) 409 Accounts payable 91,905 97,507 Accrued salaries, wages and related benefits (111,343) (118,548) Other current liabilities (34,126) (20,781) Income taxes payable (21,639) (46,971) Property incentives 3,826 9,839 Other liabilities 4,360 7,237 ---------- --------- Net cash provided by operating activities 28,751 41,202 ---------- --------- Investing Activities Capital expenditures (47,513) (53,021) Proceeds from sale of assets 18 - Purchases of short-term investments (100,000) (165,500) Sales of short-term investments 124,000 153,575 Other, net (1,941) (691) ---------- --------- Net cash used in investing activities (25,436) (65,637) ---------- --------- Financing Activities Principal payments on long-term debt (1,124) (1,021) Decrease in cash book overdrafts (1,807) (3,756) Proceeds from exercise of stock options 18,657 39,139 Proceeds from employee stock purchase plan 8,370 8,640 Excess tax benefits from stock-based payments 11,617 - Cash dividends paid (28,326) (17,758) Repurchase of common stock (212,920) (47,746) Other, net 888 2,009 ---------- --------- Net cash used in financing activities (204,645) (20,493) ---------- --------- Net decrease in cash and cash equivalents (201,330) (44,928) Cash and cash equivalents at beginning of period 462,656 360,623 ---------- --------- Cash and cash equivalents at end of period $ 261,326 $315,695 ========== ==========
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