<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 1994
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission File Number 0-6074
Nordstrom, Inc.
______________________________________________________
(Exact name of Registrant as specified in its charter)
Washington 91-0515058
_______________________________ ___________________
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1501 Fifth Avenue, Seattle, Washington 98101
____________________________________________________
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (206) 628-2111
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the Registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
YES X NO
_____ _____
Common stock outstanding as of May 31, 1994: 82,107,884 shares of
common stock.
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NORDSTROM, INC. AND SUBSIDIARIES
--------------------------------
INDEX
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Page
Number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Earnings
Three months ended April 30, 1994
and 1993 (Unaudited) 3
Consolidated Balance Sheets
April 30, 1994 and 1993 and
January 31, 1994 (unaudited) 4
Consolidated Statements of Cash Flows
Three months ended April 30, 1994
and 1993 (Unaudited) 5
Notes to Consolidated Financial Information 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 8
Item 6. Exhibits and Reports on Form 8-K 8
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NORDSTROM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in thousands except per share amounts)
(unaudited)
<TABLE>
<CAPTION>
Three Months
Ended April 30,
-------------------
1994 1993
-------- --------
<S> <C> <C>
Net sales $762,062 $695,559
Costs and expenses:
Cost of sales and related buying
and occupancy costs 510,135 482,588
Selling, general and administrative 214,864 208,199
Interest, net 7,942 9,870
Service charge income and other, net (23,652) (23,493)
-------- --------
Total costs and expenses 709,289 677,164
-------- --------
Earnings before income taxes 52,773 18,395
Income taxes 20,800 7,100
-------- --------
Net earnings $ 31,973 $ 11,295
======== ========
Net earnings per average share of
common stock $ .39 $ .14
======== ========
Cash dividends paid per share of
common stock outstanding $ .085 $ .085
======== ========
</TABLE>
These statements should be read in conjunction with the Notes to
Consolidated Financial Statements contained herein and in the Nordstrom
1993 Annual Report to Shareholders.
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NORDSTROM, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
April 30, January 31, April 30,
1994 1994 1993
---------- ----------- ----------
<S> <C> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 101,654 $ 91,222 $ 54,580
Accounts receivable, net 530,673 586,441 535,266
Merchandise inventories 621,962 585,602 624,170
Prepaid income taxes and other 52,007 51,649 50,431
---------- ----------- ----------
Total current assets 1,306,296 1,314,914 1,264,447
Property, buildings and
equipment, net 862,073 845,596 815,721
Other assets 20,810 16,971 11,330
---------- ----------- ----------
$2,189,179 $2,177,481 $2,091,498
========== =========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Notes payable $ 52,146 $ 40,337 $ 102,842
Accounts payable 279,550 264,055 265,680
Accrued salaries, wages
and taxes 120,470 156,947 118,760
Accrued expenses 34,512 35,994 31,249
Accrued income taxes 22,042 27,988 10,048
Current portion
of long-term debt 112,164 102,164 16,316
---------- ----------- ----------
Total current liabilities 620,884 627,485 544,895
Long-term debt 326,182 336,410 440,422
Deferred income taxes and other 49,326 47,082 49,624
Shareholders' equity:
Common stock, without par value:
250,000,000 shares authorized;
82,099,115, 82,059,128 and
81,984,171 shares issued
and outstanding 158,660 157,374 155,639
Retained earnings 1,034,127 1,009,130 900,918
---------- ----------- ----------
Total shareholders' equity 1,192,787 1,166,504 1,056,557
---------- ----------- ----------
$2,189,179 $2,177,481 $2,091,498
========== =========== ==========
</TABLE>
These statements should be read in conjunction with the Notes to
Consolidated Financial Statements contained herein and in the Nordstrom
1993 Annual Report to Shareholders.
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NORDSTROM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
Three Months
Ended April 30,
------------------
1994 1993
-------- --------
<S> <C> <C>
OPERATING ACTIVITIES:
Net earnings $ 31,973 $11,295
Adjustments to reconcile net earnings
to net cash provided by operating
activities:
Depreciation and amortization 24,862 24,462
Change in:
Accounts receivable, net 55,768 67,932
Merchandise inventories (36,360) (87,431)
Prepaid income taxes and other (358) 340
Accounts payable 15,495 45,504
Accrued salaries, wages and taxes (36,477) (39,268)
Accrued expenses (1,482) 108
Income tax liabilities and other (3,702) (11,858)
-------- -------
Net cash provided by operating activities 49,719 11,084
-------- -------
INVESTING ACTIVITIES:
Additions to property, buildings
and equipment, net (41,209) (15,911)
Other (3,969) (2,276)
-------- --------
Net cash used in investing activities (45,178) (18,187)
-------- --------
FINANCING ACTIVITIES:
Increase in notes payable 11,809 64,523
Proceeds from issuance of common stock 1,286 200
Principal payments on long-term debt (228) (25,207)
Cash dividends paid (6,976) (6,969)
-------- -------
Net cash provided by financing activities 5,891 32,547
-------- -------
Net increase in cash and cash equivalents 10,432 25,444
Cash and cash equivalents at
beginning of period 91,222 29,136
-------- -------
Cash and cash equivalents at end of period $101,654 $54,580
======== =======
</TABLE>
These statements should be read in conjunction with the Notes to
Consolidated Financial Statements contained herein and in the Nordstrom
1993 Annual Report to Shareholders.
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NORDSTROM, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED APRIL 30, 1994 AND 1993
(dollars in thousands)
(unaudited)
Note 1:
The consolidated balance sheets of Nordstrom, Inc. and subsidiaries as
of April 30, 1994 and 1993, and the related consolidated statements of
earnings and cash flows for the periods then ended, have been prepared
from the accounts without audit.
The consolidated financial information is applicable to interim periods
and is not necessarily indicative of the results to be expected for the
year ending January 31, 1995.
It is not considered necessary to include detailed footnote information
as of April 30, 1994 and 1993. The financial information should be read
in conjunction with the Notes to Consolidated Financial Statements
contained in the Nordstrom 1993 Annual Report to Shareholders.
In the opinion of management, the consolidated financial information
includes all adjustments (consisting only of normal recurring
adjustments) necessary to present fairly the financial position of
Nordstrom, Inc. and subsidiaries as of April 30, 1994 and 1993, and the
results of their operations and cash flows for the periods then ended,
in accordance with generally accepted accounting principles applied on a
consistent basis.
Note 2: The components of net interest are as follows:
<TABLE>
<CAPTION>
Three Months Ended April 30, 1994 1993
------- -------
<S> <C> <C>
Interest expense $9,647 $10,349
Interest income (719) (306)
Capitalized interest (986) (173)
------- -------
Interest, net $7,942 $ 9,870
======= =======
</TABLE>
Note 3: The summarized combined results of operations of Nordstrom
Credit, Inc. and Nordstrom National Credit Bank are
as follows:
<TABLE>
<CAPTION>
Three Months Ended April 30, 1994 1993
------- -------
<S> <C> <C>
Service charge and
merchant fee income $24,742 $24,012
Earnings before income taxes 10,285 8,639
Net earnings 6,585 5,564
</TABLE>
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NORDSTROM, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the
Management Discussion and Analysis section of the Nordstrom 1993 Annual
Report to Shareholders.
Results of Operations:
- - ----------------------
During the first quarter of 1994, sales increased 9.6% when compared
with the same quarter of 1993. Sales for comparable stores increased
6.9% during the quarter, with the remainder of the increase coming from
new units. The increase in comparable store sales was the highest increase
since 1989 and reflects improving trends in all areas of the Company's
operations. The Company, however, remains cautious with respect to sales
predictions for the remainder of the year.
Cost of sales and related buying and occupancy costs decreased as a
percentage of sales for the quarter due primarily to improved
merchandise margins. Buying and occupancy costs also decreased compared
to the same quarter last year.
Selling, general and administrative expenses decreased as a percentage
of sales when compared with the same quarter last year. The Company
continued its efforts to reduce the rate of growth in operating expenses,
and as a result, noted improvement in most expense categories. Specific
areas which decreased significantly included employee benefits, selling
costs, sales promotion and bad debts.
Net interest expense decreased as a percentage of sales for the quarter
due to lower levels of debt outstanding during the quarter.
Income taxes as a percentage of earnings before income taxes increased
when compared to the same quarter of 1993 due to the effects of the
Omnibus Budget Reconciliation Tax Act, which was signed into law on
August 10, 1993.
Financial Condition:
- - --------------------
The Company's working capital at April 30, 1994 decreased compared to
the prior year primarily due to an increase in current maturities of
long-term debt.
The Company's financial condition remains strong and the Company has
continued to fund its working capital needs internally. However, with
its increased spending on expansion and the maturity of over $100
million in long-term debt, it is likely that the Company will require
some external capital later this year.
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NORDSTROM, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
Financial Condition (continued):
- - --------------------------------
In May 1994, Nordstrom National Credit Bank commenced its VISA card
program, which is also expected to increase the external financing needs
of the Company.
During the quarter, the Company opened a full-line store in Annapolis
Mall, Annapolis, Maryland, and a clearance store in Schaumburg,
Illinois. Construction is progressing as planned on new stores
scheduled to open later this year and in 1995.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
- - --------------------------
The Company is not involved in any material pending legal proceedings,
other than routine litigation in the ordinary course of business.
Item 6. Exhibits and Reports on Form 8-K
- - -----------------------------------------
No reports on Form 8-K were filed during the quarter for which this
report is filed.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NORDSTROM, INC.
(Registrant)
------------------------------------------
John A. Goesling, Executive Vice President
and Treasurer
(Principal Financial and Accounting Officer)
Date: June 3, 1994
- - -----------------------
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