USA: Nordstrom Reports September Sales

Nordstrom, Inc . reported preliminary sales of $718 million for the five-week period ended October 4, 2008, a decrease of 5.8 percent compared to sales of $762 million for the five-week period ended October 6, 2007. Same-store sales decreased 9.6 percent.

Preliminary quarter-to-date sales of $1.28 billion decreased 5.1 percent compared to sales of $1.34 billion during the same period in 2007. Quarter-to-date same-store sales decreased 8.9 percent.

Preliminary year-to-date sales of $5.44 billion decreased 4.3 percent compared to sales of $5.69 billion for the same period in 2007. Year-to-date same-store sales decreased 6.8 percent.

UPDATED THIRD QUARTER OUTLOOK

"The consumer environment has been impacted by events in the financial markets over the past month," commented Blake Nordstrom, president, Nordstrom. "In September we experienced a weakening sales trend that was greater than our earlier expectations. We are monitoring business trends carefully and making the appropriate adjustments. As a result, we believe our inventories, expenses and capital expenditures are well-positioned for current economic conditions. We remain focused on serving our customers and offering a balanced merchandise offering."

The company's below-plan sales performance combined with softer consumer credit trends have lowered expected earnings for the quarter. Third quarter same-store sales are now expected to decrease nine to eleven percent, below the forecast of a four to six percent decrease announced at the end of the second quarter. As a result, the company now expects to deliver third quarter earnings per share of $0.32 to $0.37, which is below its prior outlook of $0.49 to $0.54. In keeping with its normal practice, the company will update fourth quarter and full year guidance on November 13 upon releasing third quarter earnings.

Nordstrom, Inc. is one of the nation's leading fashion specialty retailers, with 165 stores located in 28 states. Founded in 1901 as a shoe store in Seattle, today Nordstrom operates 107 full-line stores, 54 Nordstrom Racks, two Jeffrey boutiques, and two clearance stores.

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