þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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 ¨ | ||
Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company ¨ | ||
Emerging growth company ¨ |
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Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Net sales | $3,279 | $3,192 | |||||
Credit card revenues, net | 75 | 57 | |||||
Total revenues | 3,354 | 3,249 | |||||
Cost of sales and related buying and occupancy costs | (2,155 | ) | (2,100 | ) | |||
Selling, general and administrative expenses | (1,048 | ) | (1,043 | ) | |||
Earnings before interest and income taxes | 151 | 106 | |||||
Interest expense, net | (48 | ) | (31 | ) | |||
Earnings before income taxes | 103 | 75 | |||||
Income tax expense | (40 | ) | (29 | ) | |||
Net earnings | $63 | $46 | |||||
Earnings per share: | |||||||
Basic | $0.38 | $0.27 | |||||
Diluted | $0.37 | $0.26 | |||||
Weighted-average shares outstanding: | |||||||
Basic | 167.3 | 173.1 | |||||
Diluted | 169.1 | 175.7 |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Net earnings | $63 | $46 | |||||
Foreign currency translation adjustment | (12 | ) | 27 | ||||
Postretirement plan adjustments, net of tax | 1 | 1 | |||||
Comprehensive net earnings | $52 | $74 |
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $653 | $1,007 | $470 | ||||||||
Accounts receivable, net | 209 | 199 | 224 | ||||||||
Merchandise inventories | 2,160 | 1,896 | 2,125 | ||||||||
Prepaid expenses and other | 147 | 140 | 173 | ||||||||
Total current assets | 3,169 | 3,242 | 2,992 | ||||||||
Land, property and equipment (net of accumulated depreciation of $5,742, $5,596 and $5,170) | 3,872 | 3,897 | 3,789 | ||||||||
Goodwill | 238 | 238 | 435 | ||||||||
Other assets | 492 | 481 | 483 | ||||||||
Total assets | $7,771 | $7,858 | $7,699 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $1,590 | $1,340 | $1,456 | ||||||||
Accrued salaries, wages and related benefits | 319 | 455 | 320 | ||||||||
Other current liabilities | 1,225 | 1,223 | 1,150 | ||||||||
Current portion of long-term debt | 11 | 11 | 10 | ||||||||
Total current liabilities | 3,145 | 3,029 | 2,936 | ||||||||
Long-term debt, net | 2,731 | 2,763 | 2,776 | ||||||||
Deferred property incentives, net | 530 | 521 | 536 | ||||||||
Other liabilities | 688 | 675 | 576 | ||||||||
Commitments and contingencies (Note 4) | |||||||||||
Shareholders’ equity: | |||||||||||
Common stock, no par value: 1,000 shares authorized; 166.0, 170.0 and 173.4 shares issued and outstanding | 2,730 | 2,707 | 2,582 | ||||||||
Accumulated deficit | (1,999 | ) | (1,794 | ) | (1,677 | ) | |||||
Accumulated other comprehensive loss | (54 | ) | (43 | ) | (30 | ) | |||||
Total shareholders’ equity | 677 | 870 | 875 | ||||||||
Total liabilities and shareholders’ equity | $7,771 | $7,858 | $7,699 |
Accumulated | ||||||||||||||||||
Other | ||||||||||||||||||
Common Stock | Accumulated | Comprehensive | ||||||||||||||||
Shares | Amount | Deficit | Loss | Total | ||||||||||||||
Balance at January 28, 2017 | 170.0 | $2,707 | ($1,794 | ) | ($43 | ) | $870 | |||||||||||
Net earnings | — | — | 63 | — | 63 | |||||||||||||
Other comprehensive loss | — | — | — | (11 | ) | (11 | ) | |||||||||||
Dividends ($0.37 per share) | — | — | (62 | ) | — | (62 | ) | |||||||||||
Issuance of common stock under stock compensation plans | 0.3 | 11 | — | — | 11 | |||||||||||||
Stock-based compensation | 0.3 | 12 | — | — | 12 | |||||||||||||
Repurchase of common stock | (4.6 | ) | — | (206 | ) | — | (206 | ) | ||||||||||
Balance at April 29, 2017 | 166.0 | $2,730 | ($1,999 | ) | ($54 | ) | $677 | |||||||||||
Accumulated | ||||||||||||||||||
Other | ||||||||||||||||||
Common Stock | Accumulated | Comprehensive | ||||||||||||||||
Shares | Amount | Deficit | Loss | Total | ||||||||||||||
Balance at January 30, 2016 | 173.5 | $2,539 | ($1,610 | ) | ($58 | ) | $871 | |||||||||||
Net earnings | — | — | 46 | — | 46 | |||||||||||||
Other comprehensive earnings | — | — | — | 28 | 28 | |||||||||||||
Dividends ($0.37 per share) | — | — | (63 | ) | — | (63 | ) | |||||||||||
Issuance of common stock under stock compensation plans | 0.7 | 28 | — | — | 28 | |||||||||||||
Stock-based compensation | 0.2 | 15 | — | — | 15 | |||||||||||||
Repurchase of common stock | (1.0 | ) | — | (50 | ) | — | (50 | ) | ||||||||||
Balance at April 30, 2016 | 173.4 | $2,582 | ($1,677 | ) | ($30 | ) | $875 |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Operating Activities | |||||||
Net earnings | $63 | $46 | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization expenses | 161 | 155 | |||||
Amortization of deferred property incentives and other, net | (26 | ) | (17 | ) | |||
Deferred income taxes, net | (21 | ) | 6 | ||||
Stock-based compensation expense | 16 | 20 | |||||
Change in operating assets and liabilities: | |||||||
Accounts receivable | (10 | ) | (27 | ) | |||
Merchandise inventories | (266 | ) | (212 | ) | |||
Prepaid expenses and other assets | (11 | ) | 94 | ||||
Accounts payable | 272 | 192 | |||||
Accrued salaries, wages and related benefits | (136 | ) | (96 | ) | |||
Other current liabilities | 9 | (6 | ) | ||||
Deferred property incentives | 32 | 13 | |||||
Other liabilities | 6 | 8 | |||||
Net cash provided by operating activities | 89 | 176 | |||||
Investing Activities | |||||||
Capital expenditures | (153 | ) | (205 | ) | |||
Other, net | 9 | 31 | |||||
Net cash used in investing activities | (144 | ) | (174 | ) | |||
Financing Activities | |||||||
Proceeds from long-term borrowings, net of discounts | 635 | — | |||||
Principal payments on long-term borrowings | (653 | ) | (2 | ) | |||
Decrease in cash book overdrafts | (21 | ) | (33 | ) | |||
Cash dividends paid | (62 | ) | (63 | ) | |||
Payments for repurchase of common stock | (211 | ) | (50 | ) | |||
Proceeds from issuances under stock compensation plans | 11 | 28 | |||||
Tax withholding on share-based awards | (5 | ) | (4 | ) | |||
Other, net | 7 | (3 | ) | ||||
Net cash used in financing activities | (299 | ) | (127 | ) | |||
Net decrease in cash and cash equivalents | (354 | ) | (125 | ) | |||
Cash and cash equivalents at beginning of period | 1,007 | 595 | |||||
Cash and cash equivalents at end of period | $653 | $470 | |||||
Supplemental Cash Flow Information | |||||||
Cash paid during the period for: | |||||||
Income taxes (refund), net | $4 | ($83 | ) | ||||
Interest, net of capitalized interest | 50 | 17 |
• | Excess tax benefits and deficiencies resulting from stock-based compensation arrangements are now recorded within income tax expense on the Condensed Consolidated Statement of Earnings when the awards vest or are settled, rather than within equity. Additionally, excess tax benefits are now excluded from assumed future proceeds in our calculation of diluted shares for purposes of determining diluted earnings per share. The prospective adoption of this provision did not have a material effect on the Condensed Consolidated Financial Statements for the quarter ended April 29, 2017. We had no previously unrecognized excess tax benefits that would have resulted in a cumulative-effect adjustment to beginning retained earnings. |
• | Forfeitures on share-based awards are recorded as they occur, rather than our historical method of estimating forfeitures at the grant date. In evaluating the impact of this change, the adjustment to adopt on a modified retrospective basis was immaterial, therefore no adjustment has been made to beginning retained earnings. |
• | Excess tax benefits from stock-based compensation arrangements are classified as cash flows from operations, rather than as cash flows from financing activities. We adopted this change retrospectively, which resulted in an increase to net cash provided by operating activities and an increase in cash flows used in financing activities of $1 for the quarter ended April 30, 2016. Additionally, cash flows related to withholding shares for tax purposes on net-settled awards are classified as financing activities, rather than operating activities. This classification change was also adopted retrospectively, resulting in an increase of $4 to net cash provided by operating activities with an offsetting increase to net cash used in financing activities on the Condensed Consolidated Statement of Cash Flows for the quarter ended April 30, 2016. |
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||
Secured | |||||||||||
Mortgage payable, 7.68%, due April 2020 | $23 | $24 | $29 | ||||||||
Other | 2 | 3 | 4 | ||||||||
Total secured debt | 25 | 27 | 33 | ||||||||
Unsecured | |||||||||||
Net of unamortized discount: | |||||||||||
Senior notes, 6.25%, due January 2018 | — | 650 | 649 | ||||||||
Senior notes, 4.75%, due May 2020 | 499 | 499 | 499 | ||||||||
Senior notes, 4.00%, due October 2021 | 500 | 500 | 500 | ||||||||
Senior notes, 4.00%, due March 2027 | 349 | — | — | ||||||||
Senior debentures, 6.95%, due March 2028 | 300 | 300 | 300 | ||||||||
Senior notes, 7.00%, due January 2038 | 146 | 146 | 146 | ||||||||
Senior notes, 5.00%, due January 2044 | 890 | 602 | 601 | ||||||||
Other | 33 | 50 | 58 | ||||||||
Total unsecured debt | 2,717 | 2,747 | 2,753 | ||||||||
Total long-term debt | 2,742 | 2,774 | 2,786 | ||||||||
Less: current portion | (11 | ) | (11 | ) | (10 | ) | |||||
Total due beyond one year | $2,731 | $2,763 | $2,776 |
April 29, 2017 | January 28, 2017 | April 30, 2016 | |||||||||
Carrying value of long-term debt | $2,742 | $2,774 | $2,786 | ||||||||
Fair value of long-term debt | 2,921 | 2,949 | 3,085 |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Restricted stock units | $12 | $6 | |||||
Stock options | 3 | 8 | |||||
Acquisition-related stock compensation | — | 4 | |||||
Other | 1 | 2 | |||||
Total stock-based compensation expense, before income tax benefit | 16 | 20 | |||||
Income tax benefit | (6 | ) | (6 | ) | |||
Total stock-based compensation expense, net of income tax benefit | $10 | $14 |
Quarter Ended | |||||||||||||
April 29, 2017 | April 30, 2016 | ||||||||||||
Granted | Weighted-average grant-date fair value per unit | Granted | Weighted-average grant-date fair value per unit | ||||||||||
Restricted stock units | 1.7 | $43 | 0.7 | $49 | |||||||||
Stock options | 0.3 | $16 | 2.5 | $16 | |||||||||
Performance share units | 0.1 | $40 | 0.1 | $44 |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Net earnings | $63 | $46 | |||||
Basic shares | 167.3 | 173.1 | |||||
Dilutive effect of common stock equivalents | 1.8 | 2.6 | |||||
Diluted shares | 169.1 | 175.7 | |||||
Earnings per basic share | $0.38 | $0.27 | |||||
Earnings per diluted share | $0.37 | $0.26 | |||||
Anti-dilutive common stock equivalents | 12.1 | 6.8 |
Retail | Corporate/Other | Retail Business | Credit | Total | ||||||||||||||||
Quarter Ended April 29, 2017 | ||||||||||||||||||||
Net sales | $3,308 | ($29 | ) | $3,279 | $— | $3,279 | ||||||||||||||
Credit card revenues, net | — | — | — | 75 | 75 | |||||||||||||||
Earnings (loss) before interest and income taxes | 212 | (97 | ) | 115 | 36 | 151 | ||||||||||||||
Interest expense, net | — | (48 | ) | (48 | ) | — | (48 | ) | ||||||||||||
Earnings (loss) before income taxes | 212 | (145 | ) | 67 | 36 | 103 | ||||||||||||||
Quarter Ended April 30, 2016 | ||||||||||||||||||||
Net sales | $3,258 | ($66 | ) | $3,192 | $— | $3,192 | ||||||||||||||
Credit card revenues, net | — | — | — | 57 | 57 | |||||||||||||||
Earnings (loss) before interest and income taxes | 189 | (99 | ) | 90 | 16 | 106 | ||||||||||||||
Interest expense, net | — | (31 | ) | (31 | ) | — | (31 | ) | ||||||||||||
Earnings (loss) before income taxes | 189 | (130 | ) | 59 | 16 | 75 |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Nordstrom full-line stores - U.S. | $1,482 | $1,582 | |||||
Nordstrom.com | 548 | 495 | |||||
Nordstrom | 2,030 | 2,077 | |||||
Nordstrom Rack | 954 | 894 | |||||
Nordstromrack.com/HauteLook | 198 | 166 | |||||
Off-price | 1,152 | 1,060 | |||||
Other retail1 | 126 | 121 | |||||
Retail segment | 3,308 | 3,258 | |||||
Corporate/Other | (29 | ) | (66 | ) | |||
Total net sales | $3,279 | $3,192 |
• | successful execution of our customer strategy, including expansion into new domestic and international markets, acquisitions, investments in our stores and online, as well as investments in technology, our ability to realize the anticipated benefits from growth initiatives and our ability to provide a seamless experience across all channels, |
• | timely and effective execution of our ecommerce initiatives and ability to manage the costs and organizational changes associated with this evolving business model, |
• | 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 maintain relationships with our employees and to effectively attract, develop and retain our future leaders, |
• | effective inventory management processes and systems, fulfillment processes and systems, disruptions in our supply chain and our ability to control costs, |
• | the impact of any systems or network failures, cybersecurity and/or security breaches, including any security breach of our systems or those of a third party provider that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information or compliance with information security and privacy laws and regulations in the event of such an incident, |
• | successful execution of our information technology strategy, |
• | our ability to effectively utilize data in strategic planning and decision making, |
• | efficient and proper allocation of our capital resources, |
• | our ability to realize the expected benefits, respond to potential risks and appropriately manage costs associated with our program agreement with TD Bank, N.A., |
• | our ability to safeguard our reputation and maintain our vendor relationships, |
• | our ability to respond to the business and retail environment, fashion trends and consumer preferences, including changing expectations of service and experience in stores and online, and evolve our business model, |
• | the effectiveness of planned advertising, marketing and promotional campaigns in the highly competitive and promotional retail industry, |
• | the timing, price, manner 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, |
• | the impact of economic and market conditions and the resultant impact on consumer spending patterns, |
• | the impact of economic or political conditions in the U.S. and countries where our third party vendors operate, |
• | weather conditions, natural disasters, health hazards, national security or other market disruptions, or the prospects of these events and the resulting impact on consumer spending patterns or information technology systems and communications, |
• | our compliance with applicable domestic and international laws, regulations and ethical standards, including those related to banking, employment and tax and the outcome of claims and litigation and resolution of such matters, |
• | the impact of the current regulatory environment and financial system and health care reforms, and |
• | compliance with debt covenants, availability and cost of credit, changes in our credit rating, changes in interest rates, debt repayment patterns and personal bankruptcies. |
• | Online sales increased to 24% of total net sales, driven by growth of 11% at Nordstrom.com and 19% at Nordstromrack.com/HauteLook. |
• | Net sales for our off-price business increased 8.7% and now represents roughly 30% of total net sales. |
• | Total customer count increased compared with the first quarter ended 2016, reflecting our ongoing efforts to gain new customers. |
• | Through the successful partnership with TD Bank, N.A., which was established in the third quarter of 2015, credit card revenues increased $18 during the quarter. |
• | From a merchandising perspective, we continue to focus on providing customers with newness through a greater emphasis on limited-distribution and relevant product. |
• | Our long-term ambition is for continued double-digit online growth. With more than half of our online customer visits originating from mobile devices, we are pursuing new ways to connect the physical and digital experiences. For example, we plan to expand our Reserve Online and Try On In Store program from 6 to 50 stores this year. We have also increased the speed and agility around enhancements to our product pages, navigation and content. |
• | This fall, we have our sixth full-line store opening in Canada – at CF Sherway Gardens in Toronto, and two full-line store relocations in California – at Westfield Century City in Los Angeles and at University Towne Center in San Diego. We have opened six Racks so far in 2017 and have 11 more opening in the fall. |
• | Comparable Sales – sales from stores that have been open at least one full year at the beginning of the year. Total Company comparable sales include sales from our online channels |
• | Gross Profit – net sales less cost of sales and related buying and occupancy costs |
• | Inventory Turnover Rate – annual cost of sales and related buying and occupancy costs (for all segments) divided by the trailing 4-quarter average inventory |
• | Total Sales Per Square Foot – net sales divided by weighted-average square footage |
• | 4-wall Sales Per Square Foot – sales for Nordstrom U.S. and Canada full-line stores, Nordstrom Rack stores, Trunk Club clubhouses, Jeffrey boutiques and Last Chance clearance stores divided by their weighted-average square footage |
Quarter Ended | |||||||||||||
April 29, 2017 | April 30, 2016 | ||||||||||||
Amount | % of net sales1 | Amount | % of net sales1 | ||||||||||
Net sales | $3,279 | 100.0 | % | $3,192 | 100.0 | % | |||||||
Cost of sales and related buying and occupancy costs | (2,154 | ) | (65.7 | %) | (2,099 | ) | (65.8 | %) | |||||
Gross profit | 1,125 | 34.3 | % | 1,093 | 34.2 | % | |||||||
Selling, general and administrative expenses | (1,010 | ) | (30.8 | %) | (1,003 | ) | (31.4 | %) | |||||
Earnings before interest and income taxes | $115 | 3.5 | % | $90 | 2.8 | % |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Net sales by channel: | |||||||
Nordstrom full-line stores - U.S. | $1,482 | $1,582 | |||||
Nordstrom.com | 548 | 495 | |||||
Full-price | 2,030 | 2,077 | |||||
Nordstrom Rack | 954 | 894 | |||||
Nordstromrack.com/HauteLook | 198 | 166 | |||||
Off-price | 1,152 | 1,060 | |||||
Other retail1 | 126 | 121 | |||||
Retail segment | 3,308 | 3,258 | |||||
Corporate/Other | (29 | ) | (66 | ) | |||
Total net sales | $3,279 | $3,192 | |||||
Net sales increase | 2.7 | % | 2.5 | % | |||
Comparable sales increase (decrease) by channel: | |||||||
Nordstrom full-line stores - U.S. | (6.4 | %) | (7.7 | %) | |||
Nordstrom.com | 10.9 | % | 3.1 | % | |||
Full-price | (2.3 | %) | (5.4 | %) | |||
Nordstrom Rack | (0.9 | %) | (0.8 | %) | |||
Nordstromrack.com/HauteLook | 19.1 | % | 41.8 | % | |||
Off-price | 2.3 | % | 4.6 | % | |||
Total Company | (0.8 | %) | (1.7 | %) | |||
Sales per square foot: | |||||||
Total sales per square foot | $110 | $111 | |||||
4-wall sales per square foot | 85 | 89 | |||||
Full-line sales per square foot - U.S. | 72 | 76 | |||||
Nordstrom Rack sales per square foot | 120 | 123 |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Retail gross profit | $1,125 | $1,093 | |||||
Retail gross profit as a % of net sales | 34.3 | % | 34.2 | % | |||
Ending inventory per square foot | $72.58 | $73.87 | |||||
Inventory turnover rate | 4.47 | 4.42 |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Retail selling, general and administrative expenses | $1,010 | $1,003 | |||||
Retail selling, general and administrative expenses as a % of net sales | 30.8 | % | 31.4 | % |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Credit card revenues, net | $75 | $57 | |||||
Credit expenses | (39 | ) | (41 | ) | |||
Earnings before interest and income taxes | $36 | $16 | |||||
Credit and debit card volume: | |||||||
Outside | $1,001 | $1,016 | |||||
Inside | 1,237 | 1,267 | |||||
Total volume | $2,238 | $2,283 |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Credit program revenues, net | $72 | $54 | |||||
Other | 3 | 3 | |||||
Total credit card revenues, net | $75 | $57 |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Income tax expense | $40 | $29 | |||||
Effective tax rate | 38.7 | % | 38.4 | % |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Basic | $0.38 | $0.27 | |||||
Diluted | $0.37 | $0.26 |
Current Outlook | |
Net sales (percent) | 3 to 4 increase |
Comparable sales (percent) | Approximately flat |
Retail EBIT | $780 to $840 |
Credit EBIT | Approximately $140 |
Earnings per diluted share (excluding the impact of any future share repurchases) | $2.75 to $3.00 |
12 Fiscal Months Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Net earnings | $371 | $518 | |||||
Add: income tax expense | 341 | 321 | |||||
Add: interest expense | 140 | 123 | |||||
Earnings before interest and income tax expense | 852 | 962 | |||||
Add: rent expense | 212 | 182 | |||||
Less: estimated depreciation on capitalized operating leases1 | (113 | ) | (96 | ) | |||
Net operating profit | 951 | 1,048 | |||||
Less: estimated income tax expense | (436 | ) | (402 | ) | |||
Net operating profit after tax | $515 | $646 | |||||
Average total assets | $7,977 | $8,719 | |||||
Less: average non-interest-bearing current liabilities2 | (3,013 | ) | (3,039 | ) | |||
Less: average deferred property incentives and deferred rent liability2 | (644 | ) | (552 | ) | |||
Add: average estimated asset base of capitalized operating leases3 | 1,570 | 1,312 | |||||
Average invested capital | $5,890 | $6,440 | |||||
Return on assets | 4.7 | % | 5.9 | % | |||
ROIC | 8.7 | % | 10.0 | % |
Quarter Ended | |||||||
April 29, 2017 | April 30, 2016 | ||||||
Net cash provided by operating activities | $89 | $176 | |||||
Less: capital expenditures | (153 | ) | (205 | ) | |||
Less: cash dividends paid | (62 | ) | (63 | ) | |||
Less: change in cash book overdrafts | (21 | ) | (33 | ) | |||
Free Cash Flow | ($147 | ) | ($125 | ) |
Credit Ratings | Outlook | ||
Moody’s | Baa1 | Stable | |
Standard & Poor’s | BBB+ | Negative |
Base Interest Rate | Applicable Margin | |||
Euro-Dollar Rate Loan | LIBOR | 1.02 | % | |
Canadian Dealer Offer Rate Loan | CDOR | 1.02 | % | |
Base Rate Loan | various | — |
20171 | 20161 | ||||||
Debt | $2,742 | $2,786 | |||||
Add: estimated capitalized operating lease liability2 | 1,700 | 1,459 | |||||
Less: fair value hedge adjustment included in long-term debt | — | (21 | ) | ||||
Adjusted Debt | $4,442 | $4,224 | |||||
Net earnings | $371 | $518 | |||||
Add: income tax expense | 341 | 321 | |||||
Add: interest expense, net | 138 | 123 | |||||
Earnings before interest and income taxes | 850 | 962 | |||||
Add: depreciation and amortization expenses | 649 | 593 | |||||
Add: rent expense | 212 | 182 | |||||
Add: non-cash acquisition-related charges | 207 | 9 | |||||
EBITDAR | $1,918 | $1,746 | |||||
Debt to Net Earnings | 7.4 | 5.4 | |||||
Adjusted Debt to EBITDAR | 2.3 | 2.4 |
Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||
February 2017 (January 29, 2017 to February 25, 2017) | 2.3 | $44.41 | 2.3 | $928 | |||||||||
March 2017 (February 26, 2017 to April 1, 2017)1 | 2.2 | $44.95 | 2.2 | $420 | |||||||||
April 2017 (April 2, 2017 to April 29, 2017) | 0.1 | $44.73 | 0.1 | $414 | |||||||||
Total | 4.6 | $44.68 | 4.6 |
NORDSTROM, INC. | |
(Registrant) | |
/s/ Blake W. Nordstrom | |
Blake W. Nordstrom | |
Co-President and Interim Chief Financial Officer | |
(Principal Financial Officer) | |
Date: | May 31, 2017 |
Exhibit | Method of Filing | |||
10.1 | Underwriting Agreement, dated March 6, 2017, by and between the Company and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc., as representatives of the several underwriters named therein. | Incorporated by reference from the Registrant’s Form 8-K filed on March 10, 2017, Exhibit 1.1 | ||
31.1 | Certification of Co-President required by Section 302(a) of the Sarbanes-Oxley Act of 2002 | Filed herewith electronically | ||
31.2 | Certification of Interim Chief Financial Officer required by Section 302(a) of the Sarbanes-Oxley Act of 2002 | Filed herewith electronically | ||
32.1 | Certification of Co-President and Interim 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 | ||
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 | ||
Date: | May 31, 2017 |
/s/ Blake W. Nordstrom | |
Blake W. Nordstrom Co-President of Nordstrom, Inc. |
Date: | May 31, 2017 |
/s/ Blake W. Nordstrom | |
Blake W. Nordstrom Interim Chief Financial Officer of Nordstrom, Inc. |
• | 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. |
May 31, 2017 |
/s/ Blake W. Nordstrom |
Blake W. Nordstrom |
Co-President and Interim Chief Financial Officer of Nordstrom, Inc. |
Document And Entity Information - shares |
3 Months Ended | |
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Apr. 29, 2017 |
May 24, 2017 |
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Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Apr. 29, 2017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --02-03 | |
Document Fiscal Year Focus | 2017 | |
Amendment Flag | false | |
Entity Registrant Name | Nordstrom Inc. | |
Entity Central Index Key | 0000072333 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 166,052,065 |
Condensed Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
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Apr. 29, 2017 |
Apr. 30, 2016 |
|
Income Statement [Abstract] | ||
Net sales | $ 3,279 | $ 3,192 |
Credit card revenues, net | 75 | 57 |
Total revenues | 3,354 | 3,249 |
Cost of sales and related buying and occupancy costs | (2,155) | (2,100) |
Selling, general and administrative expenses | (1,048) | (1,043) |
Earnings before interest and income taxes | 151 | 106 |
Interest expense, net | (48) | (31) |
Earnings before income taxes | 103 | 75 |
Income tax expense | (40) | (29) |
Net earnings | $ 63 | $ 46 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.38 | $ 0.27 |
Diluted (in dollars per share) | $ 0.37 | $ 0.26 |
Weighted-average shares outstanding: | ||
Basic (in shares) | 167.3 | 173.1 |
Diluted (in shares) | 169.1 | 175.7 |
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions |
3 Months Ended | |
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Apr. 29, 2017 |
Apr. 30, 2016 |
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Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net earnings | $ 63 | $ 46 |
Foreign currency translation adjustment | (12) | 27 |
Postretirement plan adjustments, net of tax | 1 | 1 |
Comprehensive net earnings | $ 52 | $ 74 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions |
Apr. 29, 2017 |
Jan. 28, 2017 |
Apr. 30, 2016 |
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Assets | |||
Accumulated depreciation | $ 5,742 | $ 5,596 | $ 5,170 |
Shareholders' equity | |||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common stock, shares authorized | 1,000.0 | 1,000.0 | 1,000.0 |
Common stock, shares issued | 166.0 | 170.0 | 173.4 |
Common stock, shares outstanding | 166.0 | 170.0 | 173.4 |
Condensed Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
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Apr. 29, 2017 |
Apr. 30, 2016 |
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Statement of Stockholders' Equity [Abstract] | ||
Dividends (in dollars per share) | $ 0.37 | $ 0.37 |
Basis Of Presentation |
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Basis of Presentation [Abstract] | |||||||||||||
Basis Of Presentation | NOTE 1: BASIS OF PRESENTATION The accompanying Condensed Consolidated Financial Statements include the balances of Nordstrom, Inc. and its subsidiaries (the “Company”). 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 2016 Annual Report on Form 10-K (“Annual Report”), and reflect all adjustments of a normal recurring nature 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 April 29, 2017 and April 30, 2016 are unaudited. The Condensed Consolidated Balance Sheet as of January 28, 2017 has been derived from the audited Consolidated Financial Statements included in our 2016 Annual Report. The interim Condensed Consolidated Financial Statements should be read together with the Consolidated Financial Statements and related footnote disclosures contained in our 2016 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. Our sales are typically higher during our Anniversary Sale and the holidays in the fourth quarter. Consistent with the timing in 2016, our 2017 Anniversary Sale will take place during the last week of July and the first week of August, spanning the second and third quarters. Results for any quarter are not indicative of the results that may be achieved for a full fiscal year. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which was subsequently modified in August 2015 by ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date. The core principle of ASU No. 2014-09 is that companies should recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects what the company expects to receive. It requires additional disclosures to describe the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers. In 2016, the FASB issued additional ASUs which clarify the implementation guidance on principal versus agent considerations, on identifying performance obligations and licensing, on the revenue recognition criteria and other technical corrections. In our ongoing evaluation of this ASU, we have determined that the new standard will primarily impact the following areas: gift card breakage will be estimated based on the historical pattern of gift card redemption, rather than when redemption is considered remote; sales attributable to the loyalty program benefits (e.g., points, alterations) will be deferred rather than recorded as an increase to cost of sales; revenue related to our online sales will be recognized at the shipping point rather than receipt by the customer; and estimated costs of returns will be recorded as a current asset rather than netted with our sales return reserve. We plan to adopt this ASU in the first quarter of 2018 and are continuing to evaluate the impacts this ASU and related disclosures will have on our Consolidated Financial Statements, as well as our preferred transition method. In February 2016, the FASB issued ASU No. 2016-02, Leases. This ASU increases transparency and comparability by recognizing a lessee’s rights and obligations resulting from leases by recording them on the balance sheet as lease assets and lease liabilities. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification dictates whether lease expense is to be recognized based on an effective interest method or on a straight-line basis over the term of the lease. This ASU is effective for us beginning in the first quarter of 2019. Though we are currently evaluating the impact of these provisions, we expect they will have a material impact on our Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation — Stock Compensation — Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payments and presentation within the financial statements. We adopted ASU No. 2016-09 with an effective date of January 29, 2017. The impact of the adoption resulted in the following:
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Debt And Credit Facilities |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt And Credit Facilities | NOTE 2: DEBT AND CREDIT FACILITIES Debt A summary of our long-term debt, including capital leases, is as follows:
During the first quarter, we issued $350 aggregate principal amount of 4.00% senior unsecured notes due March 2027 and $300 aggregate principal amount of 5.00% senior unsecured notes due January 2044. With the proceeds of these new notes, we retired our $650 senior unsecured notes that were due January 2018. For the quarter ended April 29, 2017, we incurred $18 of net interest expense related to the refinancing, which included the write-off of unamortized balances associated with the debt discount, issue costs and fair value hedge adjustment resulting from the sale of our interest rate swap agreements in 2012. It also included a one-time payment of $24 to 2018 Senior Note holders under a make-whole provision, which represents the net present value of expected coupon payments had the notes been outstanding through the original maturity date. Credit Facilities As of April 29, 2017, we had total short-term borrowing capacity of $800 under our senior unsecured revolving credit facility (“revolver”) that expires in April 2020. Under the terms of our revolver, we pay a variable rate of interest and a commitment fee based on our debt rating. The revolver is available for working capital, capital expenditures and general corporate purposes. We have the option to increase the revolving commitment by up to $200, to a total of $1,000, provided that we obtain written consent from the lenders. As of April 29, 2017, we had no issuances outstanding under our commercial paper program and no borrowings outstanding under our revolver. The revolver requires that we maintain an adjusted debt to earnings before interest, income taxes, depreciation, amortization and rent (“EBITDAR”) leverage ratio of no more than four times. As of April 29, 2017, we were in compliance with this covenant. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | NOTE 3: FAIR VALUE MEASUREMENTS We disclose our financial assets and liabilities that are measured at fair value in our Condensed Consolidated Balance Sheets by level within the fair value hierarchy as defined by applicable accounting standards: Level 1: Quoted market prices in active markets for identical assets or liabilities Level 2: Other observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs that cannot be corroborated by market data that reflect the reporting entity’s own assumptions Financial Instruments Not Measured at Fair Value Financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, accounts payable and certificates of deposit, which approximate fair value due to their short-term nature, and long-term debt. We estimate the fair value of our long-term debt using quoted market prices of the same or similar issues and, as such, this is considered a Level 2 fair value measurement. The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities:
Non-financial Assets Measured at Fair Value on a Nonrecurring Basis We also measure certain non-financial assets at fair value on a nonrecurring basis, primarily goodwill, investment in contract asset and long-lived tangible and intangible assets, in connection with periodic evaluations for potential impairment. We estimate the fair value of these assets using primarily unobservable inputs and, as such, these are considered Level 3 fair value measurements. There were no material impairment charges for these assets for the quarters ended April 29, 2017 and April 30, 2016. |
Commitments And Contingencies |
3 Months Ended |
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Apr. 29, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | NOTE 4: COMMITMENTS AND CONTINGENCIES Plans for our Manhattan full-line store, which we currently expect to open in 2019, ultimately include owning a condominium interest in a mixed-use tower and leasing certain nearby properties. As of April 29, 2017, we had approximately $249 of fee interest in land, which is expected to convert to a condominium interest once the store is constructed. We have committed to make future installment payments based on the developer meeting pre-established construction and development milestones. In the event that this project is not completed, the opening may be delayed and we may be subject to future losses or capital commitments in order to complete construction or to monetize our investment in the land. |
Shareholders' Equity |
3 Months Ended |
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Apr. 29, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | NOTE 5: SHAREHOLDERS’ EQUITY In February 2017, our Board of Directors authorized a program to repurchase up to $500 of our outstanding common stock, through August 31, 2018. Our October 1, 2015 Board authorized share repurchase program expired in March 2017, which had $409 of unused capacity upon program expiration. During the quarter ended April 29, 2017, we repurchased 4.6 shares of our common stock for an aggregate purchase price of $206 and had $414 remaining in share repurchase capacity as of April 29, 2017. 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. In May 2017, subsequent to quarter end, we declared a quarterly dividend of $0.37 per share, which will be paid on June 12, 2017. |
Stock-Based Compensation |
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Stock-Based Compensation | NOTE 6: STOCK-BASED COMPENSATION The following table summarizes our stock-based compensation expense:
In 2014, restricted stock units became a growing component of our stock-based compensation mix. In the first quarter of 2017, this trend continued as our annual grant allocation shifted towards more restricted stock units and less options to better align with our compensation program’s guiding principles. The following table summarizes our grants:
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Earnings Per Share |
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Earnings Per Share | NOTE 7: EARNINGS PER SHARE The computation of earnings per share is as follows:
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Segment Reporting |
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Segment Reporting | NOTE 8: SEGMENT REPORTING The following table sets forth information for our reportable segments:
The following table summarizes net sales within our reportable segments:
1 Other retail includes Nordstrom Canada full-line stores, Trunk Club and Jeffrey boutiques (see Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations). |
Basis Of Presentation (Policies) |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which was subsequently modified in August 2015 by ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date. The core principle of ASU No. 2014-09 is that companies should recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects what the company expects to receive. It requires additional disclosures to describe the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers. In 2016, the FASB issued additional ASUs which clarify the implementation guidance on principal versus agent considerations, on identifying performance obligations and licensing, on the revenue recognition criteria and other technical corrections. In our ongoing evaluation of this ASU, we have determined that the new standard will primarily impact the following areas: gift card breakage will be estimated based on the historical pattern of gift card redemption, rather than when redemption is considered remote; sales attributable to the loyalty program benefits (e.g., points, alterations) will be deferred rather than recorded as an increase to cost of sales; revenue related to our online sales will be recognized at the shipping point rather than receipt by the customer; and estimated costs of returns will be recorded as a current asset rather than netted with our sales return reserve. We plan to adopt this ASU in the first quarter of 2018 and are continuing to evaluate the impacts this ASU and related disclosures will have on our Consolidated Financial Statements, as well as our preferred transition method. In February 2016, the FASB issued ASU No. 2016-02, Leases. This ASU increases transparency and comparability by recognizing a lessee’s rights and obligations resulting from leases by recording them on the balance sheet as lease assets and lease liabilities. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification dictates whether lease expense is to be recognized based on an effective interest method or on a straight-line basis over the term of the lease. This ASU is effective for us beginning in the first quarter of 2019. Though we are currently evaluating the impact of these provisions, we expect they will have a material impact on our Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation — Stock Compensation — Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payments and presentation within the financial statements. We adopted ASU No. 2016-09 with an effective date of January 29, 2017. The impact of the adoption resulted in the following:
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Debt And Credit Facilities (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Long-Term Debt | A summary of our long-term debt, including capital leases, is as follows:
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 29, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt | The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities:
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Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 29, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Stock-Based Compensation Expense | The following table summarizes our stock-based compensation expense:
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Summary Of Grants | The following table summarizes our grants:
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 29, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation Of Earnings Per Share | The computation of earnings per share is as follows:
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Segment Reporting (Tables) |
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Apr. 29, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information By Reportable Segment | The following table sets forth information for our reportable segments:
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Summary Of Net Sales Within Reportable Segments | The following table summarizes net sales within our reportable segments:
1 Other retail includes Nordstrom Canada full-line stores, Trunk Club and Jeffrey boutiques (see Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations). |
Fair Value Measurements (Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt) (Details) - USD ($) $ in Millions |
Apr. 29, 2017 |
Jan. 28, 2017 |
Apr. 30, 2016 |
---|---|---|---|
Fair Value Measurements, Long-term Debt [Line Items] | |||
Carrying value of long-term debt | $ 2,742 | $ 2,774 | $ 2,786 |
Level 2 [Member] | |||
Fair Value Measurements, Long-term Debt [Line Items] | |||
Fair value of long-term debt | $ 2,921 | $ 2,949 | $ 3,085 |
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 29, 2017 |
Apr. 30, 2016 |
|
Fair Value Disclosures [Abstract] | ||
Impairment charges | $ 0 | $ 0 |
Commitments And Contingencies (Narrative) (Details) $ in Millions |
Apr. 29, 2017
USD ($)
|
---|---|
Manhattan full-line store [Member] | |
Property Assets Subject to Lien [Line Items] | |
Amount of property assets subject to lien | $ 249 |
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
May 31, 2017 |
Apr. 29, 2017 |
Apr. 30, 2016 |
|
Retained Earnings Adjustments [Line Items] | |||
Shares repurchased (in shares) | 4.6 | ||
Repurchase of common stock, amount | $ 206 | $ 50 | |
Remaining share repurchase capacity | 414 | ||
Subsequent Event [Member] | |||
Retained Earnings Adjustments [Line Items] | |||
Quarterly dividend declared and paid in subsequent quarter | $ 0.37 | ||
2017 Program [Member] | |||
Retained Earnings Adjustments [Line Items] | |||
Share repurchase authorization | 500 | ||
2015 Program [Member] | |||
Retained Earnings Adjustments [Line Items] | |||
Expiration of unused share repurchase program capacity | $ 409 |
Stock-Based Compensation (Summary Of Grants) (Details) - $ / shares shares in Millions |
3 Months Ended | |
---|---|---|
Apr. 29, 2017 |
Apr. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted (in shares) | 0.3 | 2.5 |
Weighted-average grant-date fair value per stock option (in dollars per share) | $ 16 | $ 16 |
Restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted (in shares) | 1.7 | 0.7 |
Weighted-average grant-date fair value per unit (in dollars per share) | $ 43 | $ 49 |
Performance share units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted (in shares) | 0.1 | 0.1 |
Weighted-average grant-date fair value per unit (in dollars per share) | $ 40 | $ 44 |
Earnings Per Share (Computation Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 29, 2017 |
Apr. 30, 2016 |
|
Earnings Per Share [Abstract] | ||
Net earnings | $ 63 | $ 46 |
Basic shares (in shares) | 167.3 | 173.1 |
Dilutive effect of common stock equivalents (in shares) | 1.8 | 2.6 |
Diluted shares (in shares) | 169.1 | 175.7 |
Earnings per basic share (in dollars per share) | $ 0.38 | $ 0.27 |
Earnings per diluted share (in dollars per share) | $ 0.37 | $ 0.26 |
Anti-dilutive common stock equivalents (in shares) | 12.1 | 6.8 |
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