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18
Retail Business
Summary
The following table summarizes the results of our Retail Business for the fiscal years ended January 29, 2011, January 30, 2010 and January 31, 2009:
Fiscal year 2010 2009 2008
Amount
% of net
sales
Amount
% of net
sales
Amount
% of net
sales
Net sales $9,310
100.0% $8,258 100.0% $8,272 100.0%
Cost of sales and related buying and occupancy costs (5,831) (62.6%) (5,273) (63.9%) (5,367) (64.9%)
Gross profit 3,479 37.4% 2,985 36.1% 2,905 35.1%
Other revenues – N/A (1) N/A (1) N/A
Selling, general and administrative expenses (2,412) (25.9%) (2,109) (25.5%) (2,103) (25.4%)
Earnings before interest and income taxes 1,067 11.5% 875 10.6% 801 9.7%
Retail Business Net Sales
Fiscal year 2010 20091 20081
Net sales by channel:
Nordstrom full-line stores $6,995 $6,360 $6,630
Direct 705 563 501
Nordstrom 7,700 6,923 7,131
Nordstrom Rack and other 1,720 1,440 1,241
Total Retail segment sales 9,420 8,363 8,372
Corporate/Other (110) (105) (100)
Total $9,310 $8,258 $8,272
Net sales increase (decrease) 12.7% (0.2%) (6.3%)
Same-store sales increase (decrease) by channel:
Nordstrom full-line stores 7.9% (7.2%) (12.4%)
Direct 25.1% 14.5% 8.4%
Nordstrom 9.3% (5.0%) (10.6%)
Nordstrom Rack and other 0.7% 2.5% 3.1%
Total 8.1% (4.2%) (9.0%)
Sales per square foot $397 $368 $388
Percentage of net sales by merchandise category:
Women’s apparel 34% 34% 34%
Shoes 23% 22% 21%
Men’s apparel 15% 15% 16%
Women’s accessories 12% 12% 12%
Cosmetics 10% 11% 11%
Children’s apparel 3% 3% 3%
Other 3% 3% 3%
Total 100% 100% 100%
1Prior to February 2010, merchandise purchased from our online store that was later returned to our Nordstrom full-line stores was reported as a deduction from Nordstrom full-line store
sales. Beginning in February 2010, we now deduct these returns from Direct sales instead of from Nordstrom full-line store sales in order to better align sales and sales returns within each
channel. For purposes of comparison, 2009 and 2008 net sales results for both Nordstrom full-line stores and Direct have been revised to reflect this realignment of returns. This
realignment of sales returns between channels had no effect on total Retail segment sales.
NET SALES — 2010 VS 2009
Net sales for 2010 increased 12.7% compared with 2009. During the year, we opened three Nordstrom full-line stores, relocated one Nordstrom full-line
store, opened seventeen Nordstrom Rack stores and relocated one Nordstrom Rack store. These stores represented 3.3% of our total net sales for
2010, and increased our gross square footage by 4.7%. Same-store sales increased 8.1%, with increases of 9.3% at Nordstrom and 0.7% at
Nordstrom Rack.