Nordstrom Earnings Call Highlights

Blake Nordstrom:

“For 7 years now, we have strived to be a more seamless multichannel retailer for our customers. An example of this was our ability to integrate our entire inventory so that more of our merchandise is available to our customers wherever and whenever they want it. These multichannel efforts have given us a strong foundation to build on as technology becomes an increasingly important enabler of the service experience we offer our customers. We recognize the shopping landscape continues to change rapidly. More and more, customers value speed and convenience, and these factors increasingly define our service proposition.

I mentioned during last quarter’s call that we were excited about deploying approximately 6,000 mobile point-of-sale devices for our people to utilize during the Anniversary Sale. We’re learning a great deal from this technology and its ability to improve the customer service experience. As we learn more, we’re in a good position to accelerate the utilization of these devices and add more if needed. There are numerous technology initiatives that, like these devices, contribute to our ability to communicate and serve our customers on their terms.

One recent example is the enhanced mobile website we launched in June to make it more convenient for customers to shop with us. Ultimately, we want to be where our customers want us to be, and we see some real and tangible opportunities to accelerate our online growth, improve service and attract and retain more customers.”

Michael Koppel:

“Retail SG&A increased $95 million compared to last year’s second quarter. This increase, in part, reflects $27 million of HauteLook operating expenses and related purchase accounting charges. The remainder of the retail SG&A increase was primarily due to variable expenses associated with higher sales and fulfillment volume, new stores and timing differences and expenses related to better-than-planned performance. Additionally, there was increased technology spend associated with our focus on improving the customer experience, such as the mobile POS devices that we recently placed in our full-line stores.”