Nordstrom, Inc. (NYSE:JWN) Q2 2020 Earnings Conference Call August 25, 2020 4:45 PM ET Company Participants Trina Schurman - Director, IR Erik Nordstrom - CEO Anne Bramman - CFO Peter Nordstrom - President and Chief Brand Officer Conference Call Participants Omar Saad - Evercore ISI Ed Yruma - KeyBanc Capital Markets Oliver Chen - Cowen Simeon Siegel - BMO Capital Markets Sarah Goldberg - Baird Paul Trussell - Deutsche Bank Dana Telsey - Telsey Advisory Group Matthew Boss - JPMorgan Paul Lejuez - Citi Micha ...

Q2 2020 EARNINGS CALL NORDSTROM FORWARD-LOOKING STATEMENTS This presentation contains statements that are forward looking. These statements are based upon current expectations and assumptions that are subject to risks and uncertainties. We may not achieve the results projected in these forward looking statements, and our actual results could materially differ because of factors discussed in this event, in the comments made during this presentation, and in the risk factors section of our Form 10-K, Form 10-Q ...

Financial Performance - Net sales for the quarter ended May 2, 2020, were $2,026 million, a decrease of 39.4% compared to $3,349 million for the same quarter in 2019[25] - The company reported a net loss of $521 million for the quarter, compared to net earnings of $37 million in the same quarter of the previous year[28] - Comprehensive net loss for the quarter was $543 million, compared to a comprehensive net earnings of $28 million in the same quarter of the previous year[28] - The company reported a basic loss per share of $3.33 for the quarter, compared to earnings per share of $0.24 in the same quarter of 2019[25] - Total net sales for the quarter ended May 2, 2020, were $2.026 billion, a decrease of 39% from $3.349 billion in the same quarter of 2019[60] - Total net sales decreased by 40% in Q1 2020, with Full-Price sales down 36.2% and Off-Price sales down 45.2% compared to Q1 2019[96] - Earnings per diluted share decreased to ($3.33) in Q1 2020, down $3.56 from the same period in 2019 due to lower sales from COVID-19 impacts[108] - The company reported a net loss of ($521) million for the quarter ended May 2, 2020, compared to net earnings of $37 million in the same period in 2019[130] Assets and Liabilities - Total current assets increased to $3,667 million as of May 2, 2020, from $2,958 million a year earlier, primarily driven by an increase in cash and cash equivalents[30] - Long-term debt increased to $3,264 million as of May 2, 2020, compared to $2,177 million in the same quarter of the previous year, reflecting increased borrowings due to the pandemic[30] - Cash and cash equivalents at the end of the period were $1,355 million, up from $448 million at the same time last year[36] - The balance of contract liabilities decreased to $489 million as of May 2, 2020, down from $576 million as of February 1, 2020[59] - As of May 2, 2020, the carrying value of long-term debt was $3.264 billion, with a fair value estimate of $2.804 billion[69] - The company drew down $800 million on its Revolver and issued $600 million in secured debt financing, ending the quarter with $1,355 million in cash and cash equivalents[124] - As of May 2, 2020, the company had $800 million outstanding under its credit facility, with options to increase the Revolver by up to $200 million[132] Operational Impact of COVID-19 - The company incurred total asset impairment charges of $117 million due to COVID-19, including $94 million related to long-lived assets and $23 million for operating lease right-of-use assets[45] - The company temporarily closed stores starting March 17, 2020, due to COVID-19, significantly impacting financial results[83] - The company recognized $34 million in employee retention payroll tax credits during the quarter as part of the CARES Act[51] - Net cash used in operating activities increased to ($778) million for the quarter ended May 2, 2020, compared to ($31) million in the same period in 2019, primarily due to reduced net earnings from temporary store closures[120] - Free Cash Flow for the quarter ended May 2, 2020, was ($826) million, a decline from ($240) million in the same period in 2019, reflecting significant cash outflows[127] Cost Management and Restructuring - The company incurred $88 million in restructuring costs related to regional and corporate reorganization in Q1 2020[52] - SG&A expenses were $1,122 million, accounting for 55.4% of net sales, with a decrease of $266 million when excluding COVID-19 related charges[103] - The company suspended its quarterly dividend payments and share repurchase program in response to the uncertainty from the COVID-19 pandemic[75] - The company suspended quarterly cash dividends and share repurchases starting in Q2 2020 to conserve cash[93] - The company suspended quarterly cash dividends and share repurchases beginning in the second quarter of 2020, with planned expense savings of $200 to $250 million and further net cash savings of over $500 million in operating expenses, capital expenditures, and working capital for fiscal year 2020[124] Digital Sales and Future Outlook - Digital sales accounted for 54% of total net sales in Q1 2020, up from 31% in Q1 2019[60] - Digital sales accounted for 54% of total net sales, increasing by 5% year-over-year, driven by enhanced marketing and promotional activities[96] - Nordstrom, Inc. reported a significant increase in revenue, with a year-over-year growth of 20% in Q1 2023, reaching $3.5 billion[151] - The company experienced a 15% increase in active customer accounts, totaling 6 million new accounts added in the last quarter[151] - Nordstrom's digital sales accounted for 40% of total sales, reflecting a 25% increase compared to the previous year[151] - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for the upcoming fiscal year[151] - Nordstrom plans to expand its market presence by opening 5 new stores in key metropolitan areas by the end of 2023[151] - The company is investing in new technology to enhance customer experience, with a budget allocation of $50 million for digital transformation initiatives[151] - Nordstrom announced a strategic partnership with a leading logistics firm to improve supply chain efficiency, aiming to reduce delivery times by 30%[151] - The company is focusing on sustainability, with a goal to increase the percentage of sustainable products to 50% by 2025[151] - Nordstrom's recent acquisition of a tech startup is expected to enhance its e-commerce capabilities and drive future growth[151] Profitability and Expenses - Gross profit decreased by $905 million, representing 10.7% of net sales, down from 33.5% in the same period last year[101] - EBIT for Q1 2020 was ($813) million, a decrease of $890 million compared to the same period in 2019, primarily due to lower sales volume and increased markdowns[104] - Capital expenditures decreased to $131 million for the quarter ended May 2, 2020, down from $249 million in the same period in 2019, with capital expenditures as a percentage of net sales at 6.4% compared to 7.4%[122] - The effective tax rate increased to 38.4% in Q1 2020, influenced by the CARES Act allowing for loss carrybacks at higher rates[107]

Nordstrom, Inc. (NYSE:JWN) Q1 2020 Earnings Conference Call May 28, 2020 4:45 PM ET Company Participants Trina Schurman - Director, Investor Relations Erik Nordstrom - Chief Executive Officer Anne Bramman - Chief Financial Officer Peter Nordstrom - President and Chief Brand Officer Conference Call Participants Edward Yruma - KeyBanc Capital Markets Inc. Omar Saad - Evercore ISI Oliver Chen - Cowen and Company Dana Telsey - Telsey Advisory Group Damon Polistina - Deutsche Bank Tracy Kogan - Citigroup Alexand ...

Q1 2020 EARNINGS CALL NORDSTROM FORWARD-LOOKING STATEMENTS This presentation contains statements that are forward looking. These statements are based upon current expectations and assumptions that are subject to risks and uncertainties. We may not achieve the results projected in these forward looking statements, and our actual results could materially differ because of factors discussed in this event, in the comments made during this presentation, and in the risk factors section of our Form 10-K, Form 10-Q ...

Financial Position - Long-term debt amounts to $2,676 million, with a fair value of $2,905 million as of February 1, 2020[189]. - Total assets increased to $9,737 million as of February 1, 2020, up from $7,886 million in the previous year[212]. - Cash and cash equivalents total $853 million, generating interest income at variable rates[190]. - Cash and cash equivalents decreased to $853 million from $957 million in the prior year[212]. - Total current liabilities rose to $3,520 million, an increase from $3,381 million in 2018[213]. - The company reported net cash provided by operating activities of $1,236 million, down from $1,296 million in 2018[217]. - Total vendor allowances decreased from $457 million in 2017 to $418 million in 2019, with specific allowances for cosmetic expenses, purchase price adjustments, and advertising[241]. - The company reported a benefit obligation of $224 million at the end of 2019, up from $190 million in 2018, indicating an underfunded status of $224 million[298]. - Long-term debt as of February 1, 2020, was $2,676 million, a slight decrease from $2,685 million in the previous year, with total due beyond one year remaining at $2,676 million[303]. - Interest expense, net for 2019 was $102 million, down from $104 million in 2018, reflecting a decrease in interest on long-term debt and short-term borrowings[305]. Revenue and Earnings - Net sales for fiscal year 2019 were $15,132 million, a decrease of 2.2% from $15,480 million in 2018[210]. - Net earnings for fiscal year 2019 were $496 million, down 12.1% from $564 million in 2018[211]. - Earnings per share (EPS) for fiscal year 2019 were $3.20, compared to $3.37 in 2018, reflecting a decrease of 5.1%[210]. - Earnings before income taxes for 2019 were $682 million, a decrease from $733 million in 2018, with U.S. earnings at $654 million[329]. - The effective tax rate for 2019 was 27.3%, compared to 23.1% in 2018, influenced by state and local income taxes[331]. - The company reported a total current income tax expense of $134 million for 2019, down from $203 million in 2018[329]. - Retail segment net sales for fiscal year 2019 were $15,132 million, a decrease from $15,480 million in 2018, representing a decline of 2.2%[344]. - Earnings before interest and income taxes (EBIT) for the Retail segment in 2019 were $1,028 million, down from $1,059 million in 2018, a decrease of 2.9%[344]. - Gross profit for the Retail segment in fiscal year 2019 was $5,200 million, compared to $5,325 million in 2018, a decrease of 2.3%[346]. - The company reported net earnings of $496 million for fiscal year 2019, down from $564 million in 2018, a decline of 12.1%[346]. - Earnings per diluted share for fiscal year 2019 were $3.18, compared to $3.32 in 2018, a decrease of 4.2%[346]. Capital Expenditures and Investments - Capital expenditures for fiscal year 2019 were $935 million, an increase from $654 million in 2018[217]. - Capital expenditures for the Retail segment in 2019 totaled $726 million, significantly higher than $415 million in 2018, an increase of 74.9%[344]. - The company incurred $60 million in net non-cash investing activities for capital expenditures primarily related to Nordstrom NYC and the Supply Chain Network in 2019[292]. - Estimated total purchase obligations, primarily for capital expenditures and inventory, were $1,618 million as of February 1, 2020[315]. Store Operations and Market Presence - The company has six Nordstrom Full-Line Stores (FLS) and six Nordstrom Rack stores in Canada, with revenues and expenses primarily in U.S. Dollars[192]. - The company announced a temporary closure of stores in response to COVID-19, which may materially impact business operations in 2020[223]. - The company opened its NYC flagship store in October 2019, with related building and equipment assets placed into service by the end of the third quarter[316]. Inventory and Merchandise - The company’s merchandise inventories are valued using the retail inventory method, with markdowns significantly impacting inventory valuation[203]. - Merchandise inventories are valued at the lower of cost or market value, with adjustments made for markdowns based on demand and trends[256]. Financial Reporting and Controls - The company’s internal control over financial reporting was found to be effective as of February 1, 2020[196]. - The company adopted the Lease Standard in 2019, impacting the reporting of operating leases on the Consolidated Balance Sheet[258]. - The company adopted the Lease Standard in 2019, implementing a new lease accounting information system and modifying internal controls over lease accounting[351]. Stock and Shareholder Information - Share repurchases in 2019 totaled 4.1 million shares at an average price of $45, amounting to $186 million[317]. - The company paid dividends of $1.48 per share for the years 2017, 2018, and 2019, with a quarterly dividend of $0.37 declared in February 2020[318]. - Total stock-based compensation expense before income tax benefit was $69 million in 2019, down from $90 million in 2018, with a net expense of $51 million after tax benefits[322]. - The company issued 2.1 million shares of common stock under stock-based compensation plans in 2019, with 9.5 million shares authorized under the 2019 Plan[319]. - The company had 8.3 million stock options outstanding at the end of 2019, with an aggregate intrinsic value of $132 million[327]. - As of February 1, 2020, total unrecognized stock-based compensation expense related to nonvested stock options was $10 million, expected to be recognized over 35 months[327]. Risk Factors - The company is exposed to interest rate risk primarily from changes in short-term interest rates, affecting interest income and expense[190]. - The company may use forward contracts to hedge against fluctuations in foreign currency prices, although these did not have a material impact on financial statements as of February 1, 2020[191]. - The company’s Canadian operations can be affected by foreign currency fluctuations, impacting gross profit[192].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 2, 2019 or ☐ 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: 001-15059 NORDSTROM, INC. (Exact name of registrant as specified in its charter) (State ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 3, 2019 or ☐ 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: 001-15059 NORDSTROM, INC. (Exact name of registrant as specified in its charter) (State or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 4, 2019 or ¨ 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: 001-15059 NORDSTROM, INC. (Exact name of registrant as specified in its charter) Washington 9 ...

(Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 2, 2019 or Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ¨ 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 001-15059 NORDSTROM, INC. (Exact name of registrant as specified in its charter) Washington 91-05 ...