Nordstrom 2013 Annual Report Download - page 5

Nordstrom, Inc. and subsidiaries 5
INVENTORY
We plan our merchandise purchases and receipts to coincide with expected sales trends. For instance, our merchandise purchases and
receipts increase prior to our Anniversary Sale, which has historically extended over the last two weeks of July. We also purchase and
receive a larger amount of merchandise in the fall as we prepare for the holiday shopping season (from late November through December).
Beginning in 2012, we increased our investment in pack and hold inventory at Nordstrom Rack, which involves the acquisition of
merchandise from some of our full-line stores’ top brands in advance of the upcoming selling seasons to take advantage of strategic buying
opportunities. This inventory is typically held for six months on average and has contributed to the growth in our Nordstrom Rack business.
We pay for our merchandise purchases under the terms established with our vendors.
In order to offer merchandise that our customers want, we purchase from a wide variety of high-quality suppliers, including domestic and
foreign businesses. We also have arrangements with agents and contract manufacturers to produce our private label merchandise. We
expect our suppliers to meet our “Nordstrom Partnership Guidelines,” which address our corporate social responsibility standards for matters
such as legal and regulatory compliance, labor, health and safety and the environment, and are available on our website at Nordstrom.com.
EMPLOYEES
During 2013, we employed approximately 62,500 employees on a full- or part-time basis. Due to the seasonal nature of our business,
employment increased to approximately 64,500 employees in July 2013 and 66,000 in December 2013. Almost all of our employees are non-
union. We believe our relationship with our employees is good.
CAUTIONARY STATEMENT
Certain statements in this Annual Report on Form 10-K contain or may suggest “forward-looking” information (as defined in the Private
Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including, but not limited to, anticipated financial outlook for the
fiscal year ending January 31, 2015, anticipated annual same-store sales rate, anticipated Return on Invested Capital and trends in our
operations. Such statements are based upon the current beliefs and expectations of the company’s management and are subject to
significant risks and uncertainties. Actual future results may differ materially from historical results or current expectations depending upon
factors including, but not limited to:
• successful execution of our customer strategy, including expansion into new markets, acquisitions, investments in our stores and
online, our ability to realize the anticipated benefits from 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 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 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.
These and other factors, including those factors described in Item 1A: Risk Factors, could affect our financial results and cause actual results
to differ materially from any forward-looking information we may provide. We undertake no obligation to update or revise any forward-looking
statements to reflect subsequent events, new information or future circumstances.
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