Nordstrom, Inc. (NYSE: JWN) today reported net earnings of $119 million, or $0.54 per diluted share, for the first quarter ended May 3, 2008. For the same quarter last year, Nordstrom reported net earnings of $157 million and earnings per diluted share of $0.60.

Total sales in the first quarter were $1.88 billion, a decrease of 3.8 percent compared to sales of $1.95 billion during the same period in fiscal 2007. First quarter same-store sales decreased 6.5 percent.

First Quarter Highlights

The company's focus on expense management and continued inventory control enabled it to achieve the high end of its earnings per share plan, despite the challenging retail environment. Earnings per diluted share decreased 10 percent compared to the same quarter last year.

    -- Same-store sales decreased 6.5 percent for the quarter, below the
       company's planned 3 to 5 percent same-store sales decline.  Merchandise
       categories with performance above the same-store average for the
       quarter were cosmetics, designer products across all categories, and
       women's activewear and intimate apparel.
    -- Gross profit, as a percent of sales, decreased 57 basis points compared
       to last year's first quarter. Merchandise margins declined over prior
       year as the company utilized markdowns to align inventory with sales
       trends. Quarter-end inventory per square foot was down 7 percent from
       the prior year.  Three percent of the decline was due to the sale of
       the company's Faconnable business in the third quarter of 2007.  The
       decline in merchandise margin rate was partially offset by lower buying
       and occupancy costs.
    -- Selling, general and administrative expenses increased 2 percent, or
       $11 million, compared to last year's first quarter.  Retail square
       footage grew by 5 percent over last year due to the opening of seven
       full-line stores and one Rack store since May 2007.  The company's
       focus on controlling expenses offset the costs associated with these
       new stores and increased bad debt expense.
    -- In the first quarter of 2008, Nordstrom repurchased 4.6 million shares
       totaling $162 million, with an average price of $35.56. The company had
       $1.2 billion remaining on its existing authorization. First quarter
       share repurchases had a $0.01 impact on first quarter earnings per
       diluted share.


    Expansion Update
    During the first quarter, Nordstrom opened four full-line stores:

    -- On February 15, 2008, a 172,000-square-foot store at Aventura Mall in
       Aventura, Fla.;
    -- On March 7, 2008, a 211,000-square-foot store at the Ala Moana Center
       in Honolulu, Hawaii;
    -- On March 28, 2008, a 143,000-square foot-store at the Burlington Mall
       in Burlington, Mass.;
    -- On April 18, 2008, a 122,000-square-foot-store at The Mall at Partridge
       Creek in Clinton Township, Michigan.

Fiscal Year 2008 Outlook

Based on current business trends, the company has taken a more cautious approach to planning the remainder of 2008. The company is reducing operating expenses to mitigate the impact of lower sales expectations on earnings. For the fiscal year ending January 31, 2009, the company anticipates earnings per diluted share in the range of $2.65 to $2.80, decreased from the previous range of $2.75 to $2.90.

Second Quarter 2008 Outlook

For the second quarter of 2008, earnings per diluted share are expected in the range of $0.65 to $0.70, based on a same-store sales plan of -5 percent to -7 percent. Due to an earlier start date of our Half-Yearly Sale for Women and Kids, the company expects May same-store sales to be 1500 - 1700 basis points above the quarterly plan and June same-store sales are expected to be 1300 - 1500 basis points below the quarterly plan. The earlier start date does not impact the quarterly same-store sales expectations and July sales should be consistent with the second quarter rate.

Nordstrom, Inc. is one of the nation's leading fashion specialty retailers, with 159 U.S. stores located in 28 states. Founded in 1901 as a shoe store in Seattle, today Nordstrom operates 105 full-line stores, 50 Nordstrom Racks, two Jeffrey boutiques, and two clearance stores. In addition, Nordstrom serves customers through its online presence at http://www.nordstrom.com and through its catalogs. Nordstrom, Inc. is publicly traded on the NYSE under the symbol JWN.

For more information, visit http://investor.nordstrom.com/