DALLAS, Feb 20, 2004/ FW/ --- The good times keep on rolling for Seattle-based Nordstrom as it reported yesterday that for the fourth quarter of 2003, the company’s net earnings was $104.3 million, or $0.74 per diluted share, compared to $60.0 million and $0.44, respectively last year.

On a comparable 4-5-4 basis, total sales for the fourth quarter of 2003 increased 12.0 percent, to $1.9 billion, compared to sales of $1.7 billion in the same period last year. Fourth quarter 2003 same-store sales increased 8.5 percent.

The company's key strategic initiatives continue to generate operating improvements, resulting in a 74% increase in fourth quarter earnings compared to the prior year.

Same-store sales increased 8.5 percent; better than the company's plan of a two to four percent increase. Gross profit improved 350 basis points, driven by strong sell through and significant improvement in markdowns.

Selling, general and administrative expenses increased 50 basis points as a result of higher than expected performance based incentive compensation expense. All other expense components continue to trend favorably, collectively improving 100 basis points.

Fiscal 2003 net earnings and earnings per share for the period ended January 31, 2004, were $242.8 million and $1.76, respectively, compared to net earnings and earnings per share of $90.2 million and $0.66 for the same period in fiscal 2002

2003 earnings increased 51% over 2002, excluding non-recurring and impairment charges, reflecting continuing improvement in all key areas of the business. Ongoing refinement of the merchandise assortments, coupled with better disciplines in inventory planning and control, have resulted in stores having more of the right merchandise.

The company saw the strongest comp-store sales and gross margin performance in ten years, and expenses improved on a percent to sales basis for the third consecutive year.

On a comparable 4-5-4 basis, 2003 total sales of $6.5 billion increased 8.6 percent from the same period in 2002. Full year same-store sales increased 4.3 percent.