Nordstrom 2011 Annual Report Download - page 17

Nordstrom, Inc. and subsidiaries 17
Item 6. Selected Financial Data.
Dollars in millions except per square foot and per share amounts
The following selected financial data are derived from the audited consolidated financial statements and should be read in conjunction with Item 1A:
Risk Factors, Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations, and the consolidated financial
statements and related notes included in Item 8 of this Annual Report on Form 10-K.
Fiscal year 2011 2010 2009 2008
20077
Earnings Results
Net sales $10,497 $9,310 $8,258 $8,272 $8,828
Credit card revenues 380 390 369 301 252
Gross profit1 3,905 3,413 2,930 2,855 3,302
Selling, general and administrative (“SG&A”) expenses:
Retail (2,807)
(2,412) (2,109) (2,103) (2,161)
Credit (229)
(273) (356) (274) (198)
Earnings on investment in asset–backed securities, net2 - - - - 18
Earnings before interest and income taxes (“EBIT”) 1,249 1,118 834 779 1,247
Interest expense, net (130)
(127) (138) (131) (74)
Earnings before income taxes (“EBT”) 1,119 991 696 648 1,173
Net earnings 683 613 441 401 715
Balance Sheet and Cash Flow Data
Accounts receivable, net $2,033 $2,026 $2,035 $1,942 $1,788
Merchandise inventories 1,148 977 898 900 956
Current assets 5,560 4,824 4,054 3,217 3,361
Land, buildings and equipment, net 2,469 2,318 2,242 2,221 1,983
Total assets 8,491 7,462 6,579 5,661 5,600
Current liabilities 2,575 1,879 2,014 1,601 1,635
Long–term debt, including current portion 3,647 2,781 2,613 2,238 2,497
Shareholders’ equity 1,956 2,021 1,572 1,210 1,115
Cash flow from operations 1,177 1,177 1,251 848 312
Performance Metrics
Same–store sales percentage change3 7.2% 8.1% (4.2%) (9.0%) 3.9%
Gross profit % of net sales 37.2% 36.7% 35.5% 34.5% 37.4%
Retail SG&A % of net sales 26.7% 25.9% 25.5% 25.4% 24.5%
Total SG&A % of net sales 28.9% 28.8% 29.8% 28.7% 26.7%
EBIT % of total revenues 11.5% 11.5% 9.7% 9.1% 13.7%
EBT % of total revenues 10.3% 10.2% 8.1% 7.6% 12.9%
Net earnings % of total revenues 6.3% 6.3% 5.1% 4.7% 7.9%
Return on shareholders’ equity 34.3% 34.1% 31.7% 34.5% 43.6%
Return on assets 8.7% 8.6% 7.1% 7.0% 13.1%
Return on invested capital (“ROIC”)4 13.3% 13.6% 12.1% 11.6% 19.4%
Sales per square foot5 $431 $397 $368 $388 $435
Retail SG&A expense per square foot5 $115 $103 $94 $99 $106
Inventory turnover rate6 5.56 5.56 5.41 5.20 5.16
Per Share Information
Earnings per diluted share $3.14 $2.75 $2.01 $1.83 $2.88
Dividends declared per share 0.92 0.76 0.64 0.64 0.54
Book value per share 9.42 9.27 7.22 5.62 5.05
Store Information (at year-end)
Nordstrom full–line stores 117 115 112 109 101
Nordstrom Rack and other stores 108 89 72 60 55
Total square footage 24, 745,000
23,838,000 22,773,000 21,876,000 20,502,000
1Gross profit is calculated as net sales less cost of sales and related buying and occupancy costs (for all segments).
2On May 1, 2007, we combined our Nordstrom private label credit card and Nordstrom VISA credit card programs into one securitization program. At that time, the Nordstrom VISA credit
card receivables were brought on-balance sheet.
3Same-store sales include sales from stores that have been open at least one full year at the beginning of the year. We also include sales from our Nordstrom online store in same-store
sales because of the substantial integration of our Nordstrom full-line stores and online store.
4See Non-GAAP Financial Measure beginning on the following page for additional information and reconciliation to the most directly comparable GAAP financial measure.
5Sales per square foot and Retail SG&A expense per square foot are calculated as net sales and Retail SG&A expense, respectively, divided by weighted-average square footage. Weighted-
average square footage includes a percentage of year-end square footage for new stores equal to the percentage of the year during which they were open.
6Inventory turnover rate is calculated as annual cost of sales and related buying and occupancy costs (for all segments) divided by 4-quarter average inventory.
7During the third quarter of 2007, we completed the sale of our Façonnable business and realized a gain on sale of $34 ($21, net of tax). Results of operations for fiscal year 2007 include
the international Façonnable boutiques through August 31, 2007 and the domestic Façonnable boutiques through October 31, 2007.