Nordstrom, Inc. is one of the nation's leading fashion specialty retailers widely known for providing superior service and high quality, distinctive merchandise. With operations that span five different channels—full-line stores, off price stores, boutiques, catalog and internet—the company is uniquely positioned to offer customers a level of convenience that most retailers are not positioned to match.

Fourth Quarter Highlights

Earnings per diluted share in the fourth quarter increased 29 percent compared to the same quarter last year, reflecting strong sales momentum primarily due to the company's improved execution of its merchandising strategy. This growth in earnings per diluted share occurred on top of last year's 38 percent increase in the fourth quarter. The company continues to focus on providing customers with compelling merchandise and service in its full-line, Rack and online stores.

    -- Same-store sales increased 8.3 percent for the quarter, exceeding the
       company's one to three percent same-store sales plan.  Strong regular
       price sales across all major merchandise categories throughout the
       quarter and a successful holiday season drove the sales increase.
    -- Gross profit, as a percent of sales, increased 81 basis points over the
       fourth quarter fiscal 2005 result.  Merchandise margin improved versus
       the prior year, driven mainly by lower markdowns and higher sell-
       through of inventory, especially in women's apparel.
    -- Selling, general and administrative expenses as a percent to sales
       decreased 20 basis points versus the prior year.  Overall, expenses
       during the fourth quarter trended in line with the improved performance
       in sales and gross profit compared to last year.  In the fourth
       quarter, performance-based incentive compensation costs driven by goals
       for total year results and share price appreciation accelerated above
       plan, as fiscal 2006 sales, gross profit, and earnings before tax
       results exceeded expectations.
    -- As a result of the adoption of SFAS No. 123(R), "Share-Based Payment,"
       the company recorded $8.4 million in share-based compensation expense
       for the quarter, which resulted in a $0.02 impact on diluted earnings
       per share.  Of the total expense, $3.6 million was recorded in buying
       and occupancy and $4.8 million was recorded in selling, general and
       administrative expenses.
    -- Sales of $117.7 million in the 53rd week period resulted in earnings of
       $0.02 per diluted share for the quarter.

    Full Year Results
For the fiscal year ended February 3, 2007, net earnings increased 23 percent to $678.0 million compared to net earnings of $551.3 million last year. Earnings per diluted share for the same periods were $2.55 and $1.98, respectively.

Total sales for the year increased 10.8 percent to $8.6 billion compared to prior year sales of $7.7 billion, with sales for the 53rd week representing 1.5 percentage points of the total increase versus last year. As noted previously, same-store sales calculations do not include the 53rd week. For the year, same-store sales increased 7.5 percent.