-----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, GP80SKs0+QArxCIW4JZfZZSNMVPEJfvt13PVFReAWg25iLFyjgG9YgN21kvyO3n8 pIZnMyAYeFjLwSkFs63doQ== 0000072333-96-000005.txt : 19960613 0000072333-96-000005.hdr.sgml : 19960613 ACCESSION NUMBER: 0000072333-96-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960430 FILED AS OF DATE: 19960611 SROS: NASD 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: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-06074 FILM NUMBER: 96579155 BUSINESS ADDRESS: STREET 1: 1501 FIFTH AVE CITY: SEATTLE STATE: WA ZIP: 98101 BUSINESS PHONE: 2066282111 MAIL ADDRESS: STREET 1: 1321 SECOND AVENUE CITY: SEATTLE STATE: WA ZIP: 98101 FORMER COMPANY: FORMER CONFORMED NAME: NORDSTROM BEST INC DATE OF NAME CHANGE: 19730611 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 1996 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number 0-6074 Nordstrom, Inc. ______________________________________________________ (Exact name of Registrant as specified in its charter) Washington 91-0515058 _______________________________ ___________________ (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 1501 Fifth Avenue, Seattle, Washington 98101 ____________________________________________________ (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (206) 628-2111 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO _____ _____ Common stock outstanding as of May 27, 1996: 81,363,043 shares of common stock. 1 of 8 NORDSTROM, INC. AND SUBSIDIARIES -------------------------------- INDEX -----
Page Number PART I. FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) Consolidated Statements of Earnings Three months ended April 30, 1996 and 1995 3 Consolidated Balance Sheets April 30, 1996 and 1995 and January 31, 1996 4 Consolidated Statements of Cash Flows Three months ended April 30, 1996 and 1995 5 Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 PART II. OTHER INFORMATION Item 1. Legal Proceedings 8 Item 6. Exhibits and Reports on Form 8-K 8
2 of 8 NORDSTROM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (dollars in thousands except per share amounts) (unaudited)
Three Months Ended April 30, ------------------- 1996 1995 -------- -------- Net sales $905,962 $815,598 Costs and expenses: Cost of sales and related buying and occupancy 617,112 553,753 Selling, general and administrative 268,787 239,771 Interest, net 9,394 7,673 Service charge income and other, net (34,580) (31,276) -------- -------- Total costs and expenses 860,713 769,921 -------- -------- Earnings before income taxes and extraordinary item 45,249 45,677 Income taxes 17,900 18,000 -------- -------- Earnings before extraordinary item 27,349 27,677 Extraordinary charge related to the early extinguishment of debt, net of income taxes of $900 1,452 --- -------- -------- Net earnings $ 25,897 $ 27,677 ======== ======== Earnings before extraordinary item per average share of common stock outstanding $ .34 $ .34 ======== ======== Net earnings per average share of common stock outstanding $ .32 $ .34 ======== ======== Cash dividends paid per share of common stock outstanding $ .125 $ .125 ======== ======== These statements should be read in conjunction with the Notes to Consolidated Financial Statements contained herein and in the Nordstrom 1995 Annual Report to Shareholders.
3 of 8 NORDSTROM, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in thousands) (unaudited)
April 30, January 31, April 30, 1996 1996 1995 ---------- ---------- ---------- ASSETS Current Assets: Cash and cash equivalents $ 33,426 $ 24,517 $ 68,744 Accounts receivable, net 864,137 893,927 666,901 Merchandise inventories 731,647 626,303 692,652 Prepaid income taxes and other 67,759 68,029 59,952 ---------- ---------- ---------- Total current assets 1,696,969 1,612,776 1,488,249 Property, buildings and equipment, net 1,109,287 1,103,298 1,001,288 Other assets 16,943 16,545 15,073 ---------- ---------- ---------- TOTAL ASSETS $2,823,199 $2,732,619 $2,504,610 ========== ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Notes payable $ 303,423 $ 232,501 $ 158,582 Accounts payable 356,965 277,584 306,045 Accrued salaries, wages and taxes 141,304 185,540 132,863 Accrued expenses 51,487 47,834 44,105 Accrued income taxes 18,282 14,644 17,736 Current portion of long-term debt 74,210 74,210 65,967 ---------- ---------- ---------- Total current liabilities 945,671 832,313 725,298 Long-term debt 322,440 365,733 339,768 Deferred lease credits and other deferred items 111,121 111,601 77,669 Shareholders' Equity: Common stock, without par value: 250,000,000 shares authorized; 81,256,947, 81,113,144 and 82,274,034 shares issued and outstanding 176,596 168,440 164,012 Retained earnings 1,267,371 1,254,532 1,197,863 ---------- ---------- ---------- Total shareholders' equity 1,443,967 1,422,972 1,361,875 ---------- ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,823,199 $2,732,619 $2,504,610 ========== ========== ========== These statements should be read in conjunction with the Notes to Consolidated Financial Statements contained herein and in the Nordstrom 1995 Annual Report to Shareholders.
4 of 8 NORDSTROM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in thousands) (unaudited)
Three Months Ended April 30, --------------------- 1996 1995 -------- -------- OPERATING ACTIVITIES: Earnings before extraordinary item $ 27,349 $ 27,677 Adjustments to reconcile earnings to net cash provided by (used in) operating activities: Extraordinary charge related to the early extinguishment of debt, net of income taxes of $900 (1,452) --- Depreciation and amortization 38,080 29,577 Change in: Accounts receivable, net 29,790 8,990 Merchandise inventories (105,344) (64,722) Prepaid income taxes and other 270 1,443 Accounts payable 79,381 32,961 Accrued salaries, wages and taxes (44,236) (57,638) Accrued expenses 3,653 3,115 Income tax liabilities and other 1,190 (6,253) Deferred lease credits 1,969 14,548 -------- -------- Net cash provided by (used in) operating activities 30,650 (10,302) -------- -------- INVESTING ACTIVITIES: Additions to property, buildings and equipment, net (43,548) (46,541) Other (920) (115) -------- -------- Net cash used in investing activities (44,468) (46,656) -------- -------- FINANCING ACTIVITIES: Increase in notes payable 70,922 71,194 Proceeds from issuance of common stock 8,156 678 Principal payments on long-term debt (43,293) (10,175) Cash dividends paid (10,141) (10,280) Purchase and retirement of common stock (2,917) --- Proceeds from issuance of long-term debt, net --- 41,788 -------- -------- Net cash provided by financing activities 22,727 93,205 -------- -------- Net increase in cash and cash equivalents 8,909 36,247 Cash and cash equivalents at beginning of period 24,517 32,497 -------- -------- Cash and cash equivalents at end of period $ 33,426 $ 68,744 ======== ======== These statements should be read in conjunction with the Notes to Consolidated Financial Statements contained herein and in the Nordstrom 1995 Annual Report to Shareholders.
5 of 8 NORDSTROM, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED APRIL 30, 1996 AND 1995 (dollars in thousands) (unaudited) Note 1: The consolidated balance sheets of Nordstrom, Inc. and subsidiaries (the "Company") as of April 30, 1996 and 1995, and the related consolidated statements of earnings and cash flows for the periods then ended, have been prepared from the accounts without audit. The consolidated financial information is applicable to interim periods and is not necessarily indicative of the results to be expected for the year ending January 31, 1997. It is not considered necessary to include detailed footnote information as of April 30, 1996 and 1995. The financial information should be read in conjunction with the Notes to Consolidated Financial Statements contained in the Nordstrom 1995 Annual Report to Shareholders. In the opinion of management, the consolidated financial information includes all adjustments (consisting only of normal, recurring adjustments) necessary to present fairly the financial position of Nordstrom, Inc. and subsidiaries as of April 30, 1996 and 1995, and the results of their operations and cash flows for the periods then ended, in accordance with generally accepted accounting principles applied on a consistent basis. Certain reclassifications of prior year balances have been made for consistent presentation. Note 2: During the first quarter of 1996, the Company elected to prepay $43,100 of Nordstrom Credit, Inc. 9.375% sinking debentures in order to take advantage of lower short-term interest rates. This resulted in an extraordinary charge of $1,452, net of applicable income taxes of $900 ($0.02 per share). Note 3: The summarized combined results of operations of Nordstrom Credit, Inc. and Nordstrom National Credit Bank are as follows:
Three Months Ended April 30, 1996 1995 ------- ------- Total revenue $39,212 $29,523 Earnings before income taxes and extraordinary item 13,531 8,727 Extraordinary charge related to the early extinguishment of debt, net of income taxes of $900 1,452 --- Net earnings 7,109 5,587
6 of 8 NORDSTROM, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with the Management Discussion and Analysis section of the Nordstrom 1995 Annual Report to Shareholders. Results of Operations: - ---------------------- During the first quarter of 1996, sales increased 11.1% when compared with the same quarter in 1995. Sales for comparable stores increased 3.9% during the quarter, with the remainder of the increase coming from new units. Comparable store sales results were the strongest they have been in over a year, most notably in the California market. The Company, however, remains cautious with respect to sales projections for the remainder of the year. Cost of sales and related buying and occupancy costs increased as a percentage of sales when compared to the same quarter in 1995 due primarily to higher occupancy costs resulting from new stores and remodeling projects. Selling, general and administrative expenses increased as a percentage of sales when compared to the same quarter in 1995. Factors that contributed to the increase included higher bad debt expenses resulting from growth in the Company's VISA card program as well as an increase in the level of write-offs, and higher sales promotion costs due to accelerating certain promotional activities from the third to the first quarter in 1996. These increases were partially offset by lower distribution costs for the Company's direct sales division and decreased spending on development of a new payroll system which was implemented in early 1996. Interest expense increased as a percentage of sales when compared to the same quarter in 1995 primarily due to higher levels of debt outstanding during the quarter. The increase was partially offset by a decrease in interest rates. Service charge income and other, net was affected by two primary factors. Net revenues from the Company's VISA and proprietary card programs increased by 40% compared to the prior year as result of growth in these programs. The impact of this increase was offset by the effect of one-time gains in the prior year on the sale of a closed distribution facility and a full-line store, totalling $6.3 million ($0.05 per share after income taxes). Certain other information required by this item is included in Note 2 to the financial statements under Part I, Item 1, which note is incorporated herein by reference. Financial Condition: - -------------------- During the quarter, the Company opened two new full-line stores in the King of Prussia Plaza in King of Prussia, Pennsylvania and at the Dallas Galleria in Dallas, Texas, and opened a clearance store in the Village Square of Northbrook in Northbrook, Illinois. Construction is progressing as planned on new stores scheduled to open later this year and in 1997. 7 of 8 NORDSTROM, INC. AND SUBSIDIARIES PART II - OTHER INFORMATION Item 1. Legal Proceedings - -------------------------- The Company is not involved in any material pending legal proceedings, other than routine litigation in the ordinary course of business. Item 6. Exhibits and Reports on Form 8-K - ----------------------------------------- (a) Exhibits -------- (27.1) Financial Data Schedule is filed herein as an Exhibit. (b) Reports on Form 8-K ------------------- No reports on Form 8-K were filed during the quarter for which this report is filed. SIGNATURES 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 thereunto duly authorized. NORDSTROM, INC. (Registrant) /s/ John A. Goesling ------------------------------------------ John A. Goesling, Executive Vice President and Treasurer (Principal Financial and Accounting Officer) Date: June 10, 1996 - -------------------- 8 of 8 NORDSTROM, INC. AND SUBSIDIARIES
Exhibit Index Exhibit Method of Filing - ------- ---------------- 27.1 Financial Data Schedule Filed herewith electronically
EX-27 2
5 1,000 3-MOS JAN-31-1997 APR-30-1996 33,426 0 864,137 0 731,647 1,696,969 1,109,287 0 2,823,199 945,671 322,440 176,596 0 0 1,267,371 2,823,199 905,962 905,962 617,112 860,713 0 0 9,394 45,249 17,900 0 0 1,452 0 25,897 0.32 0.32
-----END PRIVACY-ENHANCED MESSAGE-----