Nordstrom 2003 Annual Report Download - page 17

Download and view the complete annual report

Please find page 17 of the 2003 Nordstrom annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 55

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55

RESULTS OF OPERATIONS
Segment results are discussed in each of the following sections
as applicable.
Net Sales (in millions)
Sales increases and 4-5-4 comparable store sales are shown in the table
below. Comparable stores are stores open at least one full fiscal year at
the beginning of the fiscal year.
Fiscal Year 2001 2002 2003
Net sales increase 1.9% 6.1% 8.6%
4-5-4 Comparable store sales (2.9%) 1.4% 4.3%
See our GAAP sales reconciliation on page 18.
We had significant sales growth in 2003 as net sales increased 8.6% over
the prior year. This growth resulted from comparable store sales increases
and store openings. Comparable store sales on a 4-5-4 basis increased
4.3% due to increases at both full-line stores and Nordstrom Rack stores.
Additionally, we opened four full-line stores and two Nordstrom Rack
stores during 2003, increasing our retail square footage 4%. Sales at
Nordstrom Direct increased approximately 15.4% due to favorable fill
rates and strong Internet sales. During 2003, Internet sales increased
approximately 46% while catalog sales declined by 9%.
Merchandise division sales were led by Women's Designer, Accessories
and Cosmetics, followed by Men's Apparel and Women’s and Men’s Shoes.
The results in these divisions were driven by fresh inventories, compelling
values and new product launches. All divisions realized benefits from our
new perpetual inventory system, which is discussed further in the next
section. Moderate customer response to our merchandise mix caused sales
declines in our Women’s Special Sizes and Children’s divisions.
In 2002, net sales increased 6.1% over the prior year. This growth was primarily
due to store openings. During 2002, we opened eight full-line stores, four
Nordstrom Rack stores and one Façonnable boutique. We also closed one
Nordstrom Rack location. The net impact was an increase in our retail
square footage of 8%. Comparable store sales increased 1.4% due to increases
at both full-line stores and Nordstrom Rack stores. Sales at Nordstrom
Direct declined slightly with a planned reduction in catalog sales partially
offset by an increase in Internet sales.
In 2004, we plan to open two full-line stores, increasing retail square
footage by approximately 2%. We expect 2004 comparable store sales to
increase in the low single digits and total sales to increase in the mid-single
digits. Internet sales are expected to continue increasing while catalog
sales are expected to decline slightly for an overall moderate increase in
Nordstrom Direct sales.
management’s discussion and analysis
NORDSTROM, INC. and SUBSIDIARIES
[15 ]
Percentage of 2003 Sales by Merchandise Category
Women’s Accessories
and Cosmetics 19%
Shoes 20%
Men’s Apparel and
Furnishings 17%
Children’s Apparel
and Accessories 4%
Women’s Apparel 36%
Other 4%
99 00 01 02 03
$5,149
$5,529 $5,634
$5,975
$6,492