Washington | 91-0515058 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1617 Sixth Avenue, Seattle, Washington | 98101 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer þ | Accelerated filer o | ||
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
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Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Net sales | $ | 3,104 | $ | 2,918 | $ | 5,761 | $ | 5,453 | |||||||
Credit card revenues | 92 | 88 | 184 | 178 | |||||||||||
Total revenues | 3,196 | 3,006 | 5,945 | 5,631 | |||||||||||
Cost of sales and related buying and occupancy costs | (2,004 | ) | (1,879 | ) | (3,677 | ) | (3,463 | ) | |||||||
Selling, general and administrative expenses | (857 | ) | (837 | ) | (1,658 | ) | (1,598 | ) | |||||||
Earnings before interest and income taxes | 335 | 290 | 610 | 570 | |||||||||||
Interest expense, net | (37 | ) | (40 | ) | (76 | ) | (80 | ) | |||||||
Earnings before income taxes | 298 | 250 | 534 | 490 | |||||||||||
Income tax expense | (114 | ) | (94 | ) | (205 | ) | (185 | ) | |||||||
Net earnings | $ | 184 | $ | 156 | $ | 329 | $ | 305 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.94 | $ | 0.76 | $ | 1.68 | $ | 1.48 | |||||||
Diluted | $ | 0.93 | $ | 0.75 | $ | 1.66 | $ | 1.45 | |||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 195.5 | 205.2 | 195.5 | 206.3 | |||||||||||
Diluted | 198.8 | 208.7 | 198.9 | 210.0 |
Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Net earnings | $ | 184 | $ | 156 | $ | 329 | $ | 305 | |||||||
Postretirement plan adjustments, net of tax | 1 | 2 | 3 | 3 | |||||||||||
Comprehensive net earnings | $ | 185 | $ | 158 | $ | 332 | $ | 308 |
August 3, 2013 | February 2, 2013 | July 28, 2012 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1,128 | $ | 1,285 | $ | 1,258 | |||||
Accounts receivable, net | 2,369 | 2,129 | 2,297 | ||||||||
Merchandise inventories | 1,464 | 1,360 | 1,394 | ||||||||
Current deferred tax assets, net | 244 | 227 | 233 | ||||||||
Prepaid expenses and other | 89 | 80 | 85 | ||||||||
Total current assets | 5,294 | 5,081 | 5,267 | ||||||||
Land, buildings and equipment (net of accumulated depreciation of $4,270, $4,064 and $3,959) | 2,810 | 2,579 | 2,499 | ||||||||
Goodwill | 175 | 175 | 175 | ||||||||
Other assets | 269 | 254 | 305 | ||||||||
Total assets | $ | 8,548 | $ | 8,089 | $ | 8,246 | |||||
Liabilities and Shareholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 1,395 | $ | 1,011 | $ | 1,345 | |||||
Accrued salaries, wages and related benefits | 322 | 404 | 290 | ||||||||
Other current liabilities | 837 | 804 | 805 | ||||||||
Current portion of long-term debt | 407 | 7 | 6 | ||||||||
Total current liabilities | 2,961 | 2,226 | 2,446 | ||||||||
Long-term debt, net | 2,715 | 3,124 | 3,133 | ||||||||
Deferred property incentives, net | 490 | 485 | 493 | ||||||||
Other liabilities | 351 | 341 | 338 | ||||||||
Commitments and contingencies | |||||||||||
Shareholders' equity: | |||||||||||
Common stock, no par value: 1,000 shares authorized; 195.5, 197.0 and 201.4 shares issued and outstanding | 1,762 | 1,645 | 1,582 | ||||||||
Retained earnings | 313 | 315 | 296 | ||||||||
Accumulated other comprehensive loss | (44 | ) | (47 | ) | (42 | ) | |||||
Total shareholders' equity | 2,031 | 1,913 | 1,836 | ||||||||
Total liabilities and shareholders' equity | $ | 8,548 | $ | 8,089 | $ | 8,246 |
Accumulated | ||||||||||||||||||
Other | ||||||||||||||||||
Common Stock | Retained | Comprehensive | ||||||||||||||||
Shares | Amount | Earnings | Loss | Total | ||||||||||||||
Balance at February 2, 2013 | 197.0 | $ | 1,645 | $ | 315 | $ | (47 | ) | $ | 1,913 | ||||||||
Net earnings | — | — | 329 | — | 329 | |||||||||||||
Postretirement plan adjustments, net of tax | — | — | — | 3 | 3 | |||||||||||||
Dividends ($0.60 per share) | — | — | (117 | ) | — | (117 | ) | |||||||||||
Issuance of common stock under stock compensation plans | 2.3 | 84 | — | — | 84 | |||||||||||||
Stock-based compensation | — | 33 | — | — | 33 | |||||||||||||
Repurchase of common stock | (3.8 | ) | — | (214 | ) | — | (214 | ) | ||||||||||
Balance at August 3, 2013 | 195.5 | $ | 1,762 | $ | 313 | $ | (44 | ) | $ | 2,031 | ||||||||
Accumulated | ||||||||||||||||||
Other | ||||||||||||||||||
Common Stock | Retained | Comprehensive | ||||||||||||||||
Shares | Amount | Earnings | Loss | Total | ||||||||||||||
Balance at January 28, 2012 | 207.6 | $ | 1,484 | $ | 517 | $ | (45 | ) | $ | 1,956 | ||||||||
Net earnings | — | — | 305 | — | 305 | |||||||||||||
Postretirement plan adjustments, net of tax | — | — | — | 3 | 3 | |||||||||||||
Dividends ($0.54 per share) | — | — | (112 | ) | — | (112 | ) | |||||||||||
Issuance of common stock under stock compensation plans | 2.1 | 72 | — | — | 72 | |||||||||||||
Stock-based compensation | — | 26 | — | — | 26 | |||||||||||||
Repurchase of common stock | (8.3 | ) | — | (414 | ) | — | (414 | ) | ||||||||||
Balance at July 28, 2012 | 201.4 | $ | 1,582 | $ | 296 | $ | (42 | ) | $ | 1,836 |
Six Months Ended | |||||||
August 3, 2013 | July 28, 2012 | ||||||
Operating Activities | |||||||
Net earnings | $ | 329 | $ | 305 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization expenses | 220 | 207 | |||||
Amortization of deferred property incentives and other, net | (32 | ) | (32 | ) | |||
Deferred income taxes, net | (35 | ) | (30 | ) | |||
Stock-based compensation expense | 34 | 31 | |||||
Tax benefit from stock-based compensation | 16 | 15 | |||||
Excess tax benefit from stock-based compensation | (17 | ) | (16 | ) | |||
Provision for bad debt expense | 30 | 31 | |||||
Change in operating assets and liabilities: | |||||||
Accounts receivable | (199 | ) | (220 | ) | |||
Merchandise inventories | (119 | ) | (218 | ) | |||
Prepaid expenses and other assets | (9 | ) | (1 | ) | |||
Accounts payable | 328 | 326 | |||||
Accrued salaries, wages and related benefits | (82 | ) | (100 | ) | |||
Other current liabilities | 30 | 37 | |||||
Deferred property incentives | 42 | 32 | |||||
Other liabilities | 11 | 5 | |||||
Net cash provided by operating activities | 547 | 372 | |||||
Investing Activities | |||||||
Capital expenditures | (427 | ) | (219 | ) | |||
Change in restricted cash | — | 200 | |||||
Change in credit card receivables originated at third parties | (70 | ) | (77 | ) | |||
Other, net | (7 | ) | (2 | ) | |||
Net cash used in investing activities | (504 | ) | (98 | ) | |||
Financing Activities | |||||||
Principal payments on long-term borrowings | (3 | ) | (503 | ) | |||
Increase in cash book overdrafts | 56 | 69 | |||||
Cash dividends paid | (117 | ) | (112 | ) | |||
Payments for repurchase of common stock | (219 | ) | (418 | ) | |||
Proceeds from issuances under stock compensation plans | 68 | 57 | |||||
Excess tax benefit from stock-based compensation | 17 | 16 | |||||
Other, net | (2 | ) | (2 | ) | |||
Net cash used in financing activities | (200 | ) | (893 | ) | |||
Net decrease in cash and cash equivalents | (157 | ) | (619 | ) | |||
Cash and cash equivalents at beginning of period | 1,285 | 1,877 | |||||
Cash and cash equivalents at end of period | $ | 1,128 | $ | 1,258 | |||
Supplemental Cash Flow Information | |||||||
Cash paid during the period for: | |||||||
Interest (net of capitalized interest) | $ | 81 | $ | 85 | |||
Income taxes paid, net of refunds | $ | 235 | $ | 222 |
August 3, 2013 | February 2, 2013 | July 28, 2012 | |||||||||
Credit card receivables: | |||||||||||
Nordstrom VISA credit card receivables | $ | 1,419 | $ | 1,348 | $ | 1,418 | |||||
Nordstrom private label card receivables | 932 | 794 | 876 | ||||||||
Total credit card receivables | 2,351 | 2,142 | 2,294 | ||||||||
Allowance for credit losses | (85 | ) | (85 | ) | (105 | ) | |||||
Credit card receivables, net | 2,266 | 2,057 | 2,189 | ||||||||
Other accounts receivable1 | 103 | 72 | 108 | ||||||||
Accounts receivable, net | $ | 2,369 | $ | 2,129 | $ | 2,297 |
Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Allowance at beginning of period | $ | 85 | $ | 105 | $ | 85 | $ | 115 | |||||||
Bad debt provision | 16 | 22 | 30 | 31 | |||||||||||
Write-offs | (21 | ) | (28 | ) | (42 | ) | (54 | ) | |||||||
Recoveries | 5 | 6 | 12 | 13 | |||||||||||
Allowance at end of period | $ | 85 | $ | 105 | $ | 85 | $ | 105 |
August 3, 2013 | February 2, 2013 | July 28, 2012 | ||||||||||||||||||
Balance | % of total | Balance | % of total | Balance | % of total | |||||||||||||||
Current | $ | 2,241 | 95.3 | % | $ | 2,018 | 94.2 | % | $ | 2,166 | 94.4 | % | ||||||||
1 – 29 days delinquent | 74 | 3.2 | % | 84 | 3.9 | % | 84 | 3.7 | % | |||||||||||
30 days or more delinquent: | ||||||||||||||||||||
30 – 59 days delinquent | 14 | 0.6 | % | 15 | 0.7 | % | 18 | 0.7 | % | |||||||||||
60 – 89 days delinquent | 9 | 0.4 | % | 10 | 0.5 | % | 11 | 0.5 | % | |||||||||||
90 days or more delinquent | 13 | 0.5 | % | 15 | 0.7 | % | 15 | 0.7 | % | |||||||||||
Total 30 days or more delinquent | 36 | 1.5 | % | 40 | 1.9 | % | 44 | 1.9 | % | |||||||||||
Total credit card receivables | $ | 2,351 | 100.0 | % | $ | 2,142 | 100.0 | % | $ | 2,294 | 100.0 | % | ||||||||
Receivables not accruing finance charges | $ | 10 | $ | 11 | $ | 10 | ||||||||||||||
Receivables 90 days or more delinquent and still accruing finance charges | $ | 7 | $ | 8 | $ | 9 |
August 3, 2013 | February 2, 2013 | July 28, 2012 | ||||||||||||||||||
FICO Score Range1 | Balance | % of total | Balance | % of total | Balance | % of total | ||||||||||||||
801+ | $ | 430 | 18.3 | % | $ | 310 | 14.5 | % | $ | 441 | 19.2 | % | ||||||||
660 – 800 | 1,455 | 61.9 | % | 1,366 | 63.8 | % | 1,419 | 61.8 | % | |||||||||||
001 – 659 | 367 | 15.6 | % | 379 | 17.7 | % | 366 | 16.0 | % | |||||||||||
Other2 | 99 | 4.2 | % | 87 | 4.0 | % | 68 | 3.0 | % | |||||||||||
Total credit card receivables | $ | 2,351 | 100.0 | % | $ | 2,142 | 100.0 | % | $ | 2,294 | 100.0 | % |
August 3, 2013 | February 2, 2013 | July 28, 2012 | |||||||||
Secured | |||||||||||
Series 2011-1 Class A Notes, 2.28%, due October 2016 | $ | 325 | $ | 325 | $ | 325 | |||||
Mortgage payable, 7.68%, due April 2020 | 44 | 47 | 49 | ||||||||
Other | 9 | 10 | 11 | ||||||||
378 | 382 | 385 | |||||||||
Unsecured | |||||||||||
Senior notes, 6.75%, due June 2014, net of unamortized discount | 400 | 400 | 399 | ||||||||
Senior notes, 6.25%, due January 2018, net of unamortized discount | 648 | 648 | 648 | ||||||||
Senior notes, 4.75%, due May 2020, net of unamortized discount | 499 | 498 | 498 | ||||||||
Senior notes, 4.00%, due October 2021, net of unamortized discount | 499 | 499 | 499 | ||||||||
Senior debentures, 6.95%, due March 2028 | 300 | 300 | 300 | ||||||||
Senior notes, 7.00%, due January 2038, net of unamortized discount | 344 | 344 | 344 | ||||||||
Other | 54 | 60 | 66 | ||||||||
2,744 | 2,749 | 2,754 | |||||||||
Total long-term debt | 3,122 | 3,131 | 3,139 | ||||||||
Less: current portion | (407 | ) | (7 | ) | (6 | ) | |||||
Total due beyond one year | $ | 2,715 | $ | 3,124 | $ | 3,133 |
August 3, 2013 | February 2, 2013 | July 28, 2012 | |||||||||
Carrying value of long-term debt1 | $ | 3,122 | $ | 3,131 | $ | 3,139 | |||||
Fair value of long-term debt | 3,471 | 3,665 | 3,755 |
Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Stock options | $ | 13 | $ | 11 | $ | 26 | $ | 21 | |||||||
HauteLook stock compensation | 2 | 3 | 4 | 5 | |||||||||||
Performance share units | 1 | 2 | 1 | 2 | |||||||||||
Employee stock purchase plan | — | — | 1 | 1 | |||||||||||
Other | 1 | 2 | 2 | 2 | |||||||||||
Total stock-based compensation expense, before income tax benefit | 17 | 18 | 34 | 31 | |||||||||||
Income tax benefit | (5 | ) | (7 | ) | (11 | ) | (11 | ) | |||||||
Total stock-based compensation expense, net of income tax benefit | $ | 12 | $ | 11 | $ | 23 | $ | 20 |
Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Net earnings | $ | 184 | $ | 156 | $ | 329 | $ | 305 | |||||||
Basic shares | 195.5 | 205.2 | 195.5 | 206.3 | |||||||||||
Dilutive effect of stock options and other | 3.3 | 3.5 | 3.4 | 3.7 | |||||||||||
Diluted shares | 198.8 | 208.7 | 198.9 | 210.0 | |||||||||||
Earnings per basic share | $ | 0.94 | $ | 0.76 | $ | 1.68 | $ | 1.48 | |||||||
Earnings per diluted share | $ | 0.93 | $ | 0.75 | $ | 1.66 | $ | 1.45 | |||||||
Anti-dilutive stock options and other | 3.4 | 5.9 | 4.6 | 6.0 |
Retail | Corporate/Other | Total Retail Business1 | Credit | Total | ||||||||||||||||
Quarter Ended August 3, 2013 | ||||||||||||||||||||
Net sales | $ | 3,245 | $ | (141 | ) | $ | 3,104 | — | $ | 3,104 | ||||||||||
Credit card revenues | — | — | — | $ | 92 | 92 | ||||||||||||||
Earnings (loss) before interest and income taxes | 375 | (80 | ) | 295 | 40 | 335 | ||||||||||||||
Interest expense, net | — | (31 | ) | (31 | ) | (6 | ) | (37 | ) | |||||||||||
Earnings (loss) before income taxes | 375 | (111 | ) | 264 | 34 | 298 | ||||||||||||||
Quarter Ended July 28, 2012 | ||||||||||||||||||||
Net sales | $ | 3,063 | $ | (145 | ) | $ | 2,918 | — | $ | 2,918 | ||||||||||
Credit card revenues | — | — | — | $ | 88 | 88 | ||||||||||||||
Earnings (loss) before interest and income taxes | 361 | (99 | ) | 262 | 28 | 290 | ||||||||||||||
Interest expense, net | — | (33 | ) | (33 | ) | (7 | ) | (40 | ) | |||||||||||
Earnings (loss) before income taxes | 361 | (132 | ) | 229 | 21 | 250 | ||||||||||||||
Six Months Ended August 3, 2013 | ||||||||||||||||||||
Net sales | $ | 5,958 | $ | (197 | ) | $ | 5,761 | — | $ | 5,761 | ||||||||||
Credit card revenues | — | — | — | $ | 184 | 184 | ||||||||||||||
Earnings (loss) before interest and income taxes | 675 | (149 | ) | 526 | 84 | 610 | ||||||||||||||
Interest expense, net | — | (64 | ) | (64 | ) | (12 | ) | (76 | ) | |||||||||||
Earnings (loss) before income taxes | 675 | (213 | ) | 462 | 72 | 534 | ||||||||||||||
Six Months Ended July 28, 2012 | ||||||||||||||||||||
Net sales | $ | 5,639 | $ | (186 | ) | $ | 5,453 | — | $ | 5,453 | ||||||||||
Credit card revenues | — | — | — | $ | 178 | 178 | ||||||||||||||
Earnings (loss) before interest and income taxes | 666 | (171 | ) | 495 | 75 | 570 | ||||||||||||||
Interest expense, net | — | (67 | ) | (67 | ) | (13 | ) | (80 | ) | |||||||||||
Earnings (loss) before income taxes | 666 | (238 | ) | 428 | 62 | 490 |
Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Nordstrom full-line stores | $ | 2,098 | $ | 2,114 | $ | 3,815 | $ | 3,830 | |||||||
Direct | 425 | 309 | 726 | 551 | |||||||||||
Nordstrom | 2,523 | 2,423 | 4,541 | 4,381 | |||||||||||
Nordstrom Rack | 645 | 577 | 1,261 | 1,134 | |||||||||||
HauteLook and Jeffrey | 77 | 63 | 156 | 124 | |||||||||||
Total Retail segment | 3,245 | 3,063 | 5,958 | 5,639 | |||||||||||
Corporate/Other | (141 | ) | (145 | ) | (197 | ) | (186 | ) | |||||||
Total net sales | $ | 3,104 | $ | 2,918 | $ | 5,761 | $ | 5,453 |
• | successful execution of our growth strategy, including expansion into new markets, acquisitions, investments in our stores and online, our ability to realize the anticipated benefits from such growth initiatives, and the timely completion of construction associated with newly planned stores, relocations and remodels, all of which may be impacted by the financial health of third parties, |
• | our ability to manage the transformation of our business/financial model as we increase our investments in growth opportunities, including our online business and our ability to manage related organizational changes, |
• | our ability to maintain relationships with our employees and to effectively attract, develop and retain our future leaders, |
• | effective inventory management, disruptions in our supply chain and our ability to control costs, |
• | the impact of any systems failures, cybersecurity and/or security breaches, including any security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or company information or our compliance with information security and privacy laws and regulations in the event of such an incident, |
• | successful execution of our information technology strategy, |
• | efficient and proper allocation of our capital resources, |
• | our ability to safeguard our reputation and maintain our vendor relationships, |
• | the impact of economic and market conditions and the resultant impact on consumer spending patterns, |
• | our ability to respond to the business environment, fashion trends and consumer preferences, including changing expectations of service and experience in stores and online, |
• | the effectiveness of planned advertising, marketing and promotional campaigns in the highly competitive retail industry, |
• | weather conditions, natural disasters, health hazards, national security or other market disruptions, or the prospects of these events and the impact on consumer spending patterns, |
• | our compliance with applicable banking related laws and regulations impacting our ability to extend credit to our customers, employment laws and regulations, certain international laws and regulations, other laws and regulations applicable to us, including the outcome of claims and litigation and resolution of tax matters, and ethical standards, |
• | impact of the current regulatory environment and financial system and health care reforms, |
• | compliance with debt covenants, availability and cost of credit, changes in interest rates, and trends in debt repayment patterns, personal bankruptcies, and bad debt write-offs, and |
• | the timing and amounts of share repurchases by the company, if any, or any share issuances by the company, including issuances associated with option exercises or other matters. |
Quarter Ended | |||||||||||||
August 3, 2013 | July 28, 2012 | ||||||||||||
Amount | % of net sales | Amount | % of net sales | ||||||||||
Net sales | $ | 3,104 | 100.0 | % | $ | 2,918 | 100.0 | % | |||||
Cost of sales and related buying and occupancy costs | (2,002 | ) | (64.5 | %) | (1,878 | ) | (64.4 | %) | |||||
Gross profit | 1,102 | 35.5 | % | 1,040 | 35.6 | % | |||||||
Selling, general and administrative expenses | (807 | ) | (26.0 | %) | (778 | ) | (26.6 | %) | |||||
Earnings before interest and income taxes | $ | 295 | 9.5 | % | $ | 262 | 9.0 | % | |||||
Six Months Ended | |||||||||||||
August 3, 2013 | July 28, 2012 | ||||||||||||
Amount | % of net sales | Amount | % of net sales | ||||||||||
Net sales | 5,761 | 100.0 | % | $ | 5,453 | 100.0 | % | ||||||
Cost of sales and related buying and occupancy costs | (3,674 | ) | (63.8 | %) | (3,461 | ) | (63.5 | %) | |||||
Gross profit | 2,087 | 36.2 | % | 1,992 | 36.5 | % | |||||||
Selling, general and administrative expenses | (1,561 | ) | (27.1 | %) | (1,497 | ) | (27.5 | %) | |||||
Earnings before interest and income taxes | 526 | 9.1 | % | $ | 495 | 9.1 | % |
Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Net sales by channel: | |||||||||||||||
Nordstrom full-line stores | $ | 2,098 | $ | 2,114 | $ | 3,815 | $ | 3,830 | |||||||
Direct | 425 | 309 | 726 | 551 | |||||||||||
Nordstrom | 2,523 | 2,423 | 4,541 | 4,381 | |||||||||||
Nordstrom Rack | 645 | 577 | 1,261 | 1,134 | |||||||||||
HauteLook and Jeffrey | 77 | 63 | 156 | 124 | |||||||||||
Total Retail segment | 3,245 | 3,063 | 5,958 | 5,639 | |||||||||||
Corporate/Other | (141 | ) | (145 | ) | (197 | ) | (186 | ) | |||||||
Total net sales | $ | 3,104 | $ | 2,918 | $ | 5,761 | $ | 5,453 | |||||||
Net sales increase | 6.4 | % | 7.4 | % | 5.6 | % | 10.3 | % | |||||||
Same-store sales increase (decrease) by channel:1 | |||||||||||||||
Nordstrom full-line stores | (0.7 | %) | 1.1 | % | (0.4 | %) | 3.1 | % | |||||||
Direct | 37.2 | % | 39.7 | % | 31.7 | % | 41.6 | % | |||||||
Nordstrom | 4.2 | % | 4.9 | % | 3.7 | % | 6.8 | % | |||||||
Nordstrom Rack | 2.4 | % | 7.7 | % | 1.6 | % | 7.3 | % | |||||||
HauteLook2 | 23.1 | % | — | 28.6 | % | — | % | ||||||||
Total | 4.4 | % | 4.5 | % | 3.6 | % | 6.3 | % | |||||||
Sales per square foot | $ | 121 | $ | 117 | $ | 226 | $ | 219 | |||||||
4-wall sales per square foot3 | $ | 108 | $ | 108 | $ | 200 | $ | 200 |
Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Gross profit1 | $ | 1,102 | $ | 1,040 | $ | 2,087 | $ | 1,992 | |||||||
Gross profit rate | 35.5 | % | 35.6 | % | 36.2 | % | 36.5 | % | |||||||
August 3, 2013 | July 28, 2012 | ||||||||||||||
Ending inventory per square foot | $ | 57.26 | $ | 55.83 | |||||||||||
Inventory turnover rate2 | 5.20 | 5.28 |
Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Selling, general and administrative expenses | $ | 807 | $ | 778 | $ | 1,561 | $ | 1,497 | |||||||
Selling, general and administrative expense rate | 26.0 | % | 26.6 | % | 27.1 | % | 27.5 | % |
Quarter Ended | Quarter Ended | ||||||||||||
August 3, 2013 | July 28, 2012 | ||||||||||||
Amount | Annualized % of average credit card receivables | Amount | Annualized % of average credit card receivables | ||||||||||
Credit card revenues | $ | 92 | 17.6 | % | $ | 88 | 17.1 | % | |||||
Occupancy, selling, general and administrative expenses | (52 | ) | (9.9 | %) | (60 | ) | (11.7 | %) | |||||
Credit segment earnings before interest and income taxes, as presented in segment disclosure | 40 | 7.7 | % | 28 | 5.5 | % | |||||||
Interest expense | (6 | ) | (1.2 | %) | (7 | ) | (1.2 | %) | |||||
Intercompany merchant fees | 28 | 5.5 | % | 26 | 5.0 | % | |||||||
Credit segment contribution, before income taxes | $ | 62 | 12.0 | % | $ | 47 | 9.2 | % | |||||
Credit and debit card volume: | |||||||||||||
Outside | $ | 1,077 | $ | 1,066 | |||||||||
Inside | 1,426 | 1,283 | |||||||||||
Total volume | $ | 2,503 | $ | 2,349 | |||||||||
Average credit card receivables | $ | 2,074 | $ | 2,039 |
Six Months Ended | Six Months Ended | ||||||||||||
August 3, 2013 | July 28, 2012 | ||||||||||||
Amount | Annualized % of average credit card receivables | Amount | Annualized % of average credit card receivables | ||||||||||
Credit card revenues | $ | 184 | 18.0 | % | $ | 178 | 17.6 | % | |||||
Occupancy, selling, general and administrative expenses | (100 | ) | (9.8 | %) | (103 | ) | (10.1 | %) | |||||
Credit segment earnings before interest and income taxes, as presented in segment disclosure | 84 | 8.2 | % | 75 | 7.5 | % | |||||||
Interest expense | (12 | ) | (1.2 | %) | (13 | ) | (1.2 | %) | |||||
Intercompany merchant fees | 48 | 4.7 | % | 43 | 4.3 | % | |||||||
Credit segment contribution, before income taxes | $ | 120 | 11.8 | % | $ | 105 | 10.5 | % | |||||
Credit and debit card volume: | |||||||||||||
Outside | $ | 2,124 | $ | 2,081 | |||||||||
Inside | 2,444 | 2,175 | |||||||||||
Total volume | $ | 4,568 | $ | 4,256 | |||||||||
Average credit card receivables | $ | 2,044 | $ | 2,012 |
Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Finance charge revenue | $ | 59 | $ | 58 | $ | 120 | $ | 118 | |||||||
Interchange – third party | 22 | 19 | 43 | 39 | |||||||||||
Late fees and other revenue | 11 | 11 | 21 | 21 | |||||||||||
Total credit card revenues | $ | 92 | $ | 88 | $ | 184 | $ | 178 |
Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Occupancy expenses | $ | 2 | $ | 1 | $ | 3 | $ | 2 | |||||||
Operational and marketing expenses | 34 | 37 | $ | 67 | $ | 70 | |||||||||
Bad debt provision | 16 | 22 | 30 | 31 | |||||||||||
Total Credit occupancy, selling, general and administrative expenses | $ | 52 | $ | 60 | $ | 100 | $ | 103 |
Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Allowance at beginning of period | $ | 85 | $ | 105 | $ | 85 | $ | 115 | |||||||
Bad debt provision | 16 | 22 | 30 | 31 | |||||||||||
Write-offs | (21 | ) | (28 | ) | (42 | ) | (54 | ) | |||||||
Recoveries | 5 | 6 | 12 | 13 | |||||||||||
Allowance at end of period | $ | 85 | $ | 105 | $ | 85 | $ | 105 | |||||||
Annualized net write-offs as a percentage of average credit card receivables | 3.1 | % | 4.1 | % | 2.9 | % | 4.1 | % | |||||||
Annualized net write-offs (including finance charges and fees) as a percentage of average credit card receivables | 3.7 | % | 4.8 | % | 3.5 | % | 4.8 | % | |||||||
August 3, 2013 | July 28, 2012 | ||||||||||||||
30 days or more delinquent as a percentage of ending credit card receivables | 1.5 | % | 1.9 | % | |||||||||||
Allowance as a percentage of ending credit card receivables | 3.6 | % | 4.6 | % |
Quarter Ended | Six Months Ended | ||||||||||||||
August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Income tax expense | $ | 114 | $ | 94 | $ | 205 | $ | 185 | |||||||
Effective tax rate | 38.2 | % | 37.6 | % | 38.3 | % | 37.8 | % |
Total sales | 3 to 4 percent increase | |
Same-store sales1 | 2 to 3 percent increase | |
Credit card revenues2 | $0 to $5 increase | |
Gross profit rate3 | 30 to 40 basis point decrease | |
Selling, general and administrative expenses (% of net sales)2 | 0 to 10 basis point increase | |
Interest expense, net | $5 to $10 decrease | |
Effective tax rate | 38.6% | |
Earnings per diluted share4 | $3.60 to $3.70 | |
Diluted shares outstanding4 | Approximately 200 |
12 Fiscal Months Ended | |||||||
August 3, 2013 | July 28, 2012 | ||||||
Net earnings | $ | 760 | $ | 668 | |||
Add: income tax expense | 469 | 410 | |||||
Add: interest expense | 158 | 150 | |||||
Earnings before interest and income tax expense | 1,387 | 1,228 | |||||
Add: rent expense | 116 | 90 | |||||
Less: estimated depreciation on capitalized operating leases1 | (62 | ) | (48 | ) | |||
Net operating profit | 1,441 | 1,270 | |||||
Estimated income tax expense2 | (550 | ) | (483 | ) | |||
Net operating profit after tax | $ | 891 | $ | 787 | |||
Average total assets3 | $ | 8,216 | $ | 8,234 | |||
Less: average non-interest-bearing current liabilities4 | (2,355 | ) | (2,172 | ) | |||
Less: average deferred property incentives3 | (488 | ) | (504 | ) | |||
Add: average estimated asset base of capitalized operating leases5 | 831 | 628 | |||||
Average invested capital | $ | 6,204 | $ | 6,186 | |||
Return on assets | 9.2 | % | 8.1 | % | |||
ROIC | 14.4 | % | 12.7 | % |
Six Months Ended | |||||||
August 3, 2013 | July 28, 2012 | ||||||
Net cash provided by operating activities | $ | 547 | $ | 372 | |||
Less: capital expenditures | (427 | ) | (219 | ) | |||
Less: cash dividends paid | (117 | ) | (112 | ) | |||
Less: change in credit card receivables originated at third parties | (70 | ) | (77 | ) | |||
Add: change in cash book overdrafts | 56 | 69 | |||||
Free Cash Flow | $ | (11 | ) | $ | 33 | ||
Net cash used in investing activities | $ | (504 | ) | $ | (98 | ) | |
Net cash used in financing activities | $ | (200 | ) | $ | (893 | ) |
Credit Ratings | Outlook | ||
Moody's | Baa1 | Stable | |
Standard & Poor's | A- | Stable |
Base Interest Rate | Applicable Margin | ||
Euro-Dollar Rate Loan | LIBOR | 0.9% | |
Canadian Dealer Offer Rate Loan | CDOR | 0.9% | |
Base Rate Loan | various | — |
20131 | 20121 | ||||||
Debt | $ | 3,122 | $ | 3,139 | |||
Add: estimated capitalized operating lease liability2 | 926 | 720 | |||||
Less: fair value hedge adjustment included in long-term debt | (54 | ) | (66 | ) | |||
Adjusted Debt | $ | 3,994 | $ | 3,793 | |||
Net earnings | $ | 760 | $ | 668 | |||
Add: income tax expense | 469 | 410 | |||||
Add: interest expense, net | 156 | 148 | |||||
Earnings before interest and income taxes | 1,385 | 1,226 | |||||
Add: depreciation and amortization expenses | 442 | 399 | |||||
Add: rent expense | 116 | 90 | |||||
Add: non-cash acquisition-related charges | 9 | 18 | |||||
EBITDAR | $ | 1,952 | $ | 1,733 | |||
Debt to Net Earnings | 4.1 | 4.7 | |||||
Adjusted Debt to EBITDAR | 2.0 | 2.2 |
Total Number of Shares (or Units) Purchased | Average Price Paid Per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs1 | ||||||||||
May 2013 (May 5, 2013 to June 1, 2013) | — | $ | — | — | $ | 1,027 | |||||||
June 2013 (June 2, 2013 to July 6, 2013) | 0.6 | $ | 59.06 | 0.6 | $ | 991 | |||||||
July 2013 (July 7, 2013 to August 3, 2013) | 0.2 | $ | 61.59 | 0.2 | $ | 979 | |||||||
Total | 0.8 | $ | 59.69 | 0.8 |
NORDSTROM, INC. | |
(Registrant) | |
/s/ Michael G. Koppel | |
Michael G. Koppel | |
Executive Vice President and Chief Financial Officer | |
(Principal Financial Officer) | |
Date: | September 3, 2013 |
Exhibit | Method of Filing | |||
31.1 | Certification of President required by Section 302(a) of the Sarbanes-Oxley Act of 2002 | Filed herewith electronically | ||
31.2 | Certification of Chief Financial Officer required by Section 302(a) of the Sarbanes-Oxley Act of 2002 | Filed herewith electronically | ||
32.1 | Certification of President and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Furnished herewith electronically | ||
99.1 | Amendment 2012-1A to the Nordstrom 401(k) Plan & Profit Sharing | Incorporated by reference from the Registrant's Form 11-K filed on June 21, 2013, Exhibit 99.12 | ||
99.2 | Amendment 2012-2 to the Nordstrom 401(k) Plan & Profit Sharing | Incorporated by reference from the Registrant's Form 11-K filed on June 21, 2013, Exhibit 99.13 | ||
101.INS | XBRL Instance Document | Filed herewith electronically | ||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith electronically | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith electronically | ||
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document | Filed herewith electronically | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith electronically | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith electronically | ||
/s/ Blake W. Nordstrom | |
Blake W. Nordstrom President of Nordstrom, Inc. | |
Date: | September 3, 2013 |
/s/ Michael G. Koppel | |
Michael G. Koppel Executive Vice President and Chief Financial Officer of Nordstrom, Inc. | |
Date: | September 3, 2013 |
• | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
• | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
September 3, 2013 |
/s/ Blake W. Nordstrom |
Blake W. Nordstrom |
President of Nordstrom, Inc. |
/s/ Michael G. Koppel |
Michael G. Koppel |
Executive Vice President and |
Chief Financial Officer of Nordstrom, Inc. |
Segment Reporting
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Aug. 03, 2013
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | SEGMENT REPORTING As discussed in Note 1: Basis of Presentation, beginning in the first quarter of 2013, we reclassified amounts in our financial statements to better reflect the way we view and measure our business. As we continue to execute our long-term growth strategy and make investments across operating segments, aligning expenses with the associated benefits enhances our ability to evaluate segment performance. Historical results were also reclassified to match the current period presentation. These reclassifications did not impact net earnings, earnings per share, financial position or cash flows. We previously recorded all of our Fashion Rewards loyalty program expenses in our Credit segment. We now allocate all of our Fashion Rewards expenses to the Retail segment, including the face value of Nordstrom Notes, which customers earn based on their level of spending and which can be redeemed for goods or services. Consistent with our previous segment reporting, our Retail segment net sales include sales from the redemption of Nordstrom Notes. In order to present the consolidated financial results in accordance with generally accepted accounting principles, our Corporate/Other column includes the elimination of net sales when customers used Nordstrom Notes and also includes an adjustment to reduce the Nordstrom Notes expense from face value to their estimated cost. In addition, certain technology expenses we previously included in Corporate/Other are now allocated to the Retail and Credit segments. In our Credit segment, we previously presented bad debt expense associated with finance charges and fees as part of selling, general and administrative expenses. We reclassified these amounts and now present them as a reduction of credit card revenue. There was no impact to Credit earnings before income taxes for this reclassification. The following tables set forth information for our reportable segments:
1Total Retail Business is not a reportable segment, but represents a subtotal of the Retail segment and Corporate/Other, and is consistent with our presentation in Management's Discussion and Analysis of Financial Condition and Results of Operations. The following table summarizes net sales within our reportable segments:
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Accounts Receivable
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Accounts Receivable | ACCOUNTS RECEIVABLE The components of accounts receivable are as follows:
1Other accounts receivable consist primarily of third party credit and debit card receivables. Activity in the allowance for credit losses is as follows:
The allowance for credit losses reflects our best estimate of the losses inherent in our receivables as of the balance sheet date, including uncollectible finance charges and fees. For purposes of determining impairment and recording the associated allowance for credit losses, we evaluate our credit card receivables on a collective basis as they are composed of large groups of smaller-balance homogeneous loans and, therefore, are not individually evaluated for impairment. We record estimated uncollectible principal balances to the bad debt provision while estimated uncollectible finance charges and fees result in a reduction of credit card revenue. Under certain circumstances, we may make modifications to payment terms for a customer experiencing financial difficulties in an effort to help the customer avoid a charge-off or bankruptcy, and to maximize our recovery of the outstanding balance. These modifications, which meet the accounting definition of troubled debt restructurings ("TDRs"), include reduced or waived fees and finance charges, and/or reduced minimum payments. Receivables classified as TDRs were $45, or 1.9% of our total credit card receivables as of August 3, 2013, $53, or 2.5% of our total credit card receivables as of February 2, 2013 and $58, or 2.5% of our total credit card receivables as of July 28, 2012. Credit Quality The primary indicators of the credit quality of our credit card receivables are aging and delinquency, particularly the levels of account balances delinquent 30 days or more as these are the accounts most likely to be written off. The following table illustrates the aging and delinquency status of our credit card receivables:
We also evaluate credit quality using FICO credit scores. The following table illustrates the distribution of our credit card receivables across FICO score ranges:
1Credit scores for our credit cardholders are updated at least every 60 days for active accounts and every 90 days for inactive accounts. Amounts listed in the table reflect the most recently obtained credit scores as of the dates indicated. 2Other consists of amounts not yet posted to customers' accounts and receivables from customers for whom FICO scores are temporarily unavailable. |
Accounts Receivable (Components Of Accounts Receivable) (Details) (USD $)
In Millions, unless otherwise specified |
Aug. 03, 2013
|
May 04, 2013
|
Feb. 02, 2013
|
Jul. 28, 2012
|
Apr. 28, 2012
|
Jan. 28, 2012
|
|||||
---|---|---|---|---|---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Credit card receivables | $ 2,351 | $ 2,142 | $ 2,294 | ||||||||
Allowance for credit losses | (85) | (85) | (85) | (105) | (105) | (115) | |||||
Credit card receivables, net | 2,266 | 2,057 | 2,189 | ||||||||
Other accounts receivable | 103 | [1] | 72 | [1] | 108 | [1] | |||||
Accounts receivable, net | 2,369 | 2,129 | 2,297 | ||||||||
Nordstrom VISA credit card receivables [Member]
|
|||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Credit card receivables | 1,419 | 1,348 | 1,418 | ||||||||
Nordstrom private label card receivables [Member]
|
|||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Credit card receivables | $ 932 | $ 794 | $ 876 | ||||||||
|
Accounts Receivable (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 03, 2013
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Accounts Receivable, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Accounts Receivable | The components of accounts receivable are as follows:
1Other accounts receivable consist primarily of third party credit and debit card receivables. |
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Activity In The Allowance For Credit Losses | Activity in the allowance for credit losses is as follows:
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Aging And Delinquency Status Of Credit Card Receivables | The following table illustrates the aging and delinquency status of our credit card receivables:
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Distributions Of Credit Card Receivables Across FICO Score Ranges | The following table illustrates the distribution of our credit card receivables across FICO score ranges:
1Credit scores for our credit cardholders are updated at least every 60 days for active accounts and every 90 days for inactive accounts. Amounts listed in the table reflect the most recently obtained credit scores as of the dates indicated. 2Other consists of amounts not yet posted to customers' accounts and receivables from customers for whom FICO scores are temporarily unavailable. |
Segment Reporting (Schedule Of Information By Reportable Segments) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Aug. 03, 2013
|
Jul. 28, 2012
|
Aug. 03, 2013
|
Jul. 28, 2012
|
|||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | $ 3,104 | $ 2,918 | $ 5,761 | $ 5,453 | ||||||
Credit card revenues | 92 | 88 | 184 | 178 | ||||||
Earnings (loss) before interest and income taxes | 335 | 290 | 610 | 570 | ||||||
Interest expense, net | (37) | (40) | (76) | (80) | ||||||
Earnings (loss) before income taxes | 298 | 250 | 534 | 490 | ||||||
Retail [Member]
|
||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 3,245 | 3,063 | 5,958 | 5,639 | ||||||
Credit card revenues | 0 | 0 | 0 | 0 | ||||||
Earnings (loss) before interest and income taxes | 375 | 361 | 675 | 666 | ||||||
Interest expense, net | 0 | 0 | 0 | 0 | ||||||
Earnings (loss) before income taxes | 375 | 361 | 675 | 666 | ||||||
Corporate/Other [Member]
|
||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | (141) | (145) | (197) | (186) | ||||||
Credit card revenues | 0 | 0 | 0 | 0 | ||||||
Earnings (loss) before interest and income taxes | (80) | (99) | (149) | (171) | ||||||
Interest expense, net | (31) | (33) | (64) | (67) | ||||||
Earnings (loss) before income taxes | (111) | (132) | (213) | (238) | ||||||
Total Retail Business [Member]
|
||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 3,104 | [1] | 2,918 | [1] | 5,761 | [1] | 5,453 | [1] | ||
Credit card revenues | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | ||
Earnings (loss) before interest and income taxes | 295 | [1] | 262 | [1] | 526 | [1] | 495 | [1] | ||
Interest expense, net | (31) | [1] | (33) | [1] | (64) | [1] | (67) | [1] | ||
Earnings (loss) before income taxes | 264 | [1] | 229 | [1] | 462 | [1] | 428 | [1] | ||
Credit [Member]
|
||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 0 | 0 | 0 | 0 | ||||||
Credit card revenues | 92 | 88 | 184 | 178 | ||||||
Earnings (loss) before interest and income taxes | 40 | 28 | 84 | 75 | ||||||
Interest expense, net | (6) | (7) | (12) | (13) | ||||||
Earnings (loss) before income taxes | $ 34 | $ 21 | $ 72 | $ 62 | ||||||
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Accounts Receivable (Distributions Of Credit Card Receivables Across FICO Score Ranges) (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 03, 2013
|
Feb. 02, 2013
|
Jul. 28, 2012
|
Aug. 03, 2013
801 plus [Member]
|
Feb. 02, 2013
801 plus [Member]
|
Jul. 28, 2012
801 plus [Member]
|
Aug. 03, 2013
660-800 [Member]
|
Feb. 02, 2013
660-800 [Member]
|
Jul. 28, 2012
660-800 [Member]
|
Aug. 03, 2013
001-659 [Member]
|
Feb. 02, 2013
001-659 [Member]
|
Jul. 28, 2012
001-659 [Member]
|
Aug. 03, 2013
Other [Member]
|
Feb. 02, 2013
Other [Member]
|
Jul. 28, 2012
Other [Member]
|
Aug. 03, 2013
Maximum [Member]
Active cardholder [Member]
|
Aug. 03, 2013
Maximum [Member]
Inactive cardholder [Member]
|
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Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||||||
Credit card receivables | $ 2,351 | $ 2,142 | $ 2,294 | $ 430 | [1] | $ 310 | [1] | $ 441 | [1] | $ 1,455 | [1] | $ 1,366 | [1] | $ 1,419 | [1] | $ 367 | [1] | $ 379 | [1] | $ 366 | [1] | $ 99 | [1],[2] | $ 87 | [1],[2] | $ 68 | [1],[2] | ||||||
Credit card receivables, % of total | 100.00% | 100.00% | 100.00% | 18.30% | [1] | 14.50% | [1] | 19.20% | [1] | 61.90% | [1] | 63.80% | [1] | 61.80% | [1] | 15.60% | [1] | 17.70% | [1] | 16.00% | [1] | 4.20% | [1],[2] | 4.00% | [1],[2] | 3.00% | [1],[2] | ||||||
Credit scores updated | 60 days | 90 days | |||||||||||||||||||||||||||||||
|
Shareholders' Equity (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | 18 Months Ended | 6 Months Ended | |
---|---|---|---|---|
Aug. 03, 2013
|
Jul. 28, 2012
|
Aug. 03, 2013
2012 Program [Member]
|
Aug. 03, 2013
2013 Program [Member]
|
|
Share Repurchase Program [Line Items] | ||||
Share repurchase authorization | $ 800 | $ 800 | ||
Shares repurchased (in shares) | 3.8 | |||
Repurchase of common stock, amount | 214 | 414 | ||
Remaining share repurchase capacity | $ 979 |
Fair Value Measurements (Estimate Of The Fair Value Of Long-term Debt) (Details) (USD $)
In Millions, unless otherwise specified |
Aug. 03, 2013
|
Feb. 02, 2013
|
Jul. 28, 2012
|
|||||
---|---|---|---|---|---|---|---|---|
Fair Value Measurements, Long-term Debt [Line Items] | ||||||||
Carrying value of long-term debt | $ 3,122 | [1] | $ 3,131 | [1] | $ 3,139 | [1] | ||
Level 2 [Member]
|
||||||||
Fair Value Measurements, Long-term Debt [Line Items] | ||||||||
Fair value of long-term debt | $ 3,471 | $ 3,665 | $ 3,755 | |||||
|
Accounts Receivable (Activity In The Allowance For Credit Losses) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Aug. 03, 2013
|
Jul. 28, 2012
|
Aug. 03, 2013
|
Jul. 28, 2012
|
|
Accounts Receivable, Net [Abstract] | ||||
Allowance at beginning of period | $ 85 | $ 105 | $ 85 | $ 115 |
Bad debt provision | 16 | 22 | 30 | 31 |
Write-offs | (21) | (28) | (42) | (54) |
Recoveries | 5 | 6 | 12 | 13 |
Allowance at end of period | $ 85 | $ 105 | $ 85 | $ 105 |
Debt And Credit Facilities
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 03, 2013
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt And Credit Facilities | DEBT AND CREDIT FACILITIES Debt A summary of our long-term debt is as follows:
Credit Facilities As of August 3, 2013, we had total short-term borrowing capacity available for general corporate purposes of $800. In March 2013, we terminated both our $600 unsecured revolving credit facility that was scheduled to expire in June 2016, and our $200 2007-A Variable Funding Note that was scheduled to expire in January 2014. We replaced these with a new five-year $800 senior unsecured revolving credit facility ("revolver") that expires in March 2018. Under the terms of our new revolver, we pay a variable rate of interest and a commitment fee based on our debt rating. The new revolver is available for working capital, capital expenditures and general corporate purposes and backs our commercial paper program. During the six months ended August 3, 2013, we had no issuances under our commercial paper program and no borrowings under our new revolver or the $600 credit facility prior to termination. The new revolver requires that we maintain a leverage ratio, defined as Adjusted Debt to Earnings before Interest, Income Taxes, Depreciation, Amortization and Rent ("EBITDAR"), of less than four times. As of August 3, 2013, we were in compliance with this covenant. Also in March 2013, our wholly owned subsidiary Nordstrom fsb terminated its $100 variable funding facility. We had no borrowings under this facility prior to termination. |
Basis Of Presentation
|
6 Months Ended |
---|---|
Aug. 03, 2013
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | BASIS OF PRESENTATION The accompanying condensed consolidated financial statements include the balances of Nordstrom, Inc. and its subsidiaries. All intercompany transactions and balances are eliminated in consolidation. The interim condensed consolidated financial statements have been prepared on a basis consistent in all material respects with the accounting policies described and applied in our 2012 Annual Report on Form 10-K ("Annual Report"), and reflect all adjustments that are, in management's opinion, necessary for the fair presentation of the results of operations, financial position and cash flows for the periods presented. The condensed consolidated financial statements as of and for the periods ended August 3, 2013 and July 28, 2012 are unaudited. The condensed consolidated balance sheet as of February 2, 2013 has been derived from the audited consolidated financial statements included in our 2012 Annual Report. The interim condensed consolidated financial statements should be read together with the consolidated financial statements and related footnote disclosures contained in our 2012 Annual Report. The preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. We base our estimates on historical experience and other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions. Our business, like that of other retailers, is subject to seasonal fluctuations. Due to our Anniversary Sale in July, the holidays in December and the half-yearly sales that occur in our second and fourth quarters, our sales are typically higher in the second and fourth quarters of the fiscal year than in the first and third quarters. In 2013, our Anniversary Sale took place in the second quarter, while in 2012 it occurred during both the second and third quarters. This will impact comparisons of performance to the prior year. Results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. Reclassification Prior to 2013, we presented bad debt expense associated with finance charges and fees as a part of selling, general and administrative expenses. Beginning in the first quarter of 2013, we reclassified these amounts and now present them as a reduction of credit card revenue. Historical results were also reclassified to match the current period presentation. These reclassifications did not impact net earnings, earnings per share, financial position or cash flows. See Note 9: Segment Reporting for additional changes in the way we view and measure our business and segment performance. None of these changes impact our condensed consolidated financial statements. |
Accounts Receivable (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | |||
---|---|---|---|---|
Aug. 03, 2013
|
Feb. 02, 2013
|
Jul. 28, 2012
|
Aug. 03, 2013
Minimum [Member]
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit card receivables classified as TDRs | $ 45 | $ 53 | $ 58 | |
Percent of credit card receivables classified as TDRs | 1.90% | 2.50% | 2.50% | |
Days delinquent, accounts most likely to be written off | 30 days |
Fair Value Measurements (Narrative) (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $)
In Millions, unless otherwise specified |
6 Months Ended | |
---|---|---|
Aug. 03, 2013
|
Jul. 28, 2012
|
|
Fair Value, Measurements, Nonrecurring [Member]
|
||
Fair Value, Measurements, Nonrecurring [Line Items] | ||
Impairment charges | $ 0 | $ 0 |
Earnings Per Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Aug. 03, 2013
|
Jul. 28, 2012
|
Aug. 03, 2013
|
Jul. 28, 2012
|
|
Earnings Per Share [Abstract] | ||||
Net earnings | $ 184 | $ 156 | $ 329 | $ 305 |
Basic shares (in shares) | 195.5 | 205.2 | 195.5 | 206.3 |
Dilutive effect of stock options and other (in shares) | 3.3 | 3.5 | 3.4 | 3.7 |
Diluted shares (in shares) | 198.8 | 208.7 | 198.9 | 210.0 |
Earnings per basic share (in dollars per share) | $ 0.94 | $ 0.76 | $ 1.68 | $ 1.48 |
Earnings per diluted share (in dollars per share) | $ 0.93 | $ 0.75 | $ 1.66 | $ 1.45 |
Anti-dilutive stock options and other (in shares) | 3.4 | 5.9 | 4.6 | 6.0 |