Nordstrom 2Q16 Earnings Call Notes

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Nordstrom (JWN) Q2 2016 Results

Blake W. Nordstrom – Co-President & Director

Made substantial progress bringing inventory down

“Thank you and good afternoon. Over the past several quarters, our team has been actively addressing our inventory, expense, and capital as we align to current sales trends. In the second quarter, the team made substantial progress by bringing down inventory in line with sales.”

Best inventory positions we’ve been in

“And I think, overall, the most important thing is, whether it’s the Rack or our stores, we’re in one of the best inventory positions we’ve been in, in many years. We’re able to respond to the customer, partner with our vendors and have good flow, and a lot of good things come from that.”

Michael G. Koppel – Chief Financial Officer & Executive Vice President

No big news traffic wise

“Now, well, you know we really don’t track traffic within our stores. I would say, generally speaking, it was roughly – for the quarter, roughly equivalent to what it has been. I don’t think there was any big news there.”

Peter E. Nordstrom – Director, Executive VP & President-Merchandising

Peter E. Nordstrom – Director, Executive VP & President-Merchandising

Promotional activity has stabilized a bit

“With regards to price matching – this is Pete – our practices remain the same. But I think it’s fair to say that the promotional activity has stabilized a bit here in the last quarter or so. To the point you made, there’s vendors out there choosing to participate in different ways than they may have in the past with our competitors. What we’re trying to do is put ourselves in a real favorable position with vendors to be the retailer of choice for them, and what that means for most of the vendors we deal with is our desire, strong desire, to sell at full-price. And so, we focus a lot on flow and newness and all that.”

There’s so much more available online than at any given store

“And I think one of the things that happens slightly on the downside of that is the context it creates for some stores. There’s so much more available online than there might be at any given store. So I think our ongoing challenge is to do the best we can to make sure each store has the best possible product offer that it has, and the kind of stuff that customers ask about are the things that are hard to get. And they ask for that everywhere. And that has to do with some of the limited distribution stuff that’s obvious – that’s usually connected to designer or what have you.”