Nordstrom, Inc. engages in the manufacture and trade of clothes, shoes and accessories. It operates through the following business segments: Retail, Credit and Corporate/Other. The Retail segment manages physical stores and online shops. The Credit segment offers a range of payment options to customers. The Corporate/Other segment includes sales return reserve, expenses, and assets. The company was founded by John W. Nordstrom in 1901 and is headquartered in Seattle, WA.
Our inability to successfully execute our customer strategy or evolve our business model could negatively impact our business and future profitability and growth.
Our business could suffer if we do not appropriately assess and react to competitive market forces and changes in customer behavior.
Our customer relationships and sales may be negatively impacted if we do not anticipate and respond to consumer preferences and fashion trends or manage inventory levels appropriately.
The investment in existing and new locations, including our Nordstrom Men’s Store NYC and Nordstrom NYC and Supply Chain Network facilities, may not achieve our expected returns.
Even if we take appropriate measures to safeguard our information, network and environment from security breaches, our customers, employees and business could still be exposed to risk.
Our business may be impacted by information technology system failures or network disruptions.
Improvements to our merchandise buying and fulfillment processes and systems could adversely affect our business if not successfully executed.
Our customer, employee and vendor relationships could be negatively affected if we fail to maintain our corporate culture and reputation.
If we do not effectively design and implement our strategic and business planning processes to attract, retain, train and develop talent and future leaders, our business may suffer.
Our program agreement with TD could adversely impact our business.
Ownership and leasing real estate exposes us to possible liabilities and losses.
Investment and partnerships in new business strategies and acquisitions could disrupt our core business.
If we fail to appropriately manage our capital, we may negatively impact our operations and shareholder return.
The concentration of stock ownership in a small number of our shareholders could limit our shareholders’ ability to influence corporate matters.
Our revenues and operating results are affected by the seasonal nature of our business and cyclical trends in consumer spending.
Our stores located in shopping centers may be adversely affected by any declines in consumer traffic of shopping centers.
Our business depends on third parties for the production, supply or delivery of goods, and a disruption could result in lost sales or increased costs.
The results from our credit card operations could be adversely affected by changes in market conditions or laws.
Our business and operations could be materially and adversely affected by supply chain disruptions, port disruptions, severe weather patterns, natural disasters, widespread pandemics and other natural or man-made disruptions.
We are subject to certain laws, litigation, regulatory matters and ethical standards, and compliance or our failure to comply with or adequately address developments as they arise could adversely affect our reputation and operations.
Changes to accounting rules and regulations could affect our financial results or financial condition.
In our ongoing effort to enhance the customer experience, we are focused on providing customers with a seamless experience across our channels. We invested early in our omni-channel capabilities, integrating our operations, merchandising and technology across our stores and online, in both our Full-Price and Off-Price businesses. While our customers may engage with us through multiple channels, we know they value the overall Nordstrom brand experience and view us simply as Nordstrom, which is ultimately how we view our business. We have one reportable segment in 2018, Retail, and analyze our results on a total Company basis.
Similar to other retailers, Nordstrom follows the retail 4-5-4 reporting calendar, which included an extra week in the fourth quarter of 2017 (the “53rd week”). References to 2018 and all years except 2017 within this document are based on a 52-week fiscal year, while 2017 is based on a 53-week fiscal year. However, the 53rd week is not included in the comparable sales calculations.
We may not calculate certain metrics used to evaluate our business in a consistent manner among industry peers. Provided below are definitions of metrics we present within our analysis: