Nordstrom Stock Leaving Nasdaq For N.Y. Exchange

SEATTLE RETAILER'S move to the Big Board is a bid for a higher profile and increased share price.

Hoping to heighten its profile and increase the value of its stock, Nordstrom will begin trading its shares on the New York Stock Exchange (NYSE) next month.

"We believe our move to the NYSE could help increase liquidity and reduce trading volatility of Nordstrom stock," said Chief Executive Officer John Whitacre. "Association with the world's largest exchange could also provide Nordstrom improved visibility, both on Wall Street and in international markets, which could widen our potential investor base."

The company's stock was down $2.188 to $31.938 in late trading today.

Since its initial public offering in 1971, Nordstrom stock has traded on the Nasdaq under the symbol NOBE. The company's ticker symbol on the NYSE will be JWN, representing the initials of company founder John W. Nordstrom.

That change, along with the company's performance in its fiscal 1998 year ended Jan. 31, 1999, was reviewed yesterday by top Nordstrom executives during the retailer's annual shareholder meeting in Seattle.

Nordstrom Chief Financial Officer Michael Stein acknowledged that the company's financial performance must improve during the second half of this year.

Profit for the first quarter ended April 30 fell 2.5 percent to $31.5 million, or 22 cents a share, from $32.2 million, or 21 cents a share, a year ago. Sales dropped 0.1 percent to $1.039 billion

from $1.04 billion a year ago.

Sales at stores open a year or more also declined by 2.6 percent. Although overall Nordstrom profit for fiscal 1998 rose 11 percent,Whitacre said the company must make greater strides toward keeping inventory levels down and stocking the kinds of merchandise customers want.

"Progress was made," Whitacre said, "but we still have plenty of work ahead of us that we need to go after aggressively."

Part of that strategy includes opening stores in new markets, especially Southeastern states such as Florida, Georgia and Texas.

Nordstrom plans openings next year in Atlanta; Frisco, Texas, a northeast suburb of Dallas; and Boca Raton, Fla. In 2001, the company plans to build three more stores in Texas and one in Tampa.

In all, the company plans to open more than 30 new stores in a dozen states by the end of 2002. Nordstrom currently operates 99 stores in 22 states.

In addition to the full-line stores, which tend to be 140,000 to 160,000 square feet, Nordstrom hopes to open off-price Rack stores over the next few years in Atlanta, Los Angeles and Brea, Calif.

Nordstrom is targeting the Southeastern states, but said there are at least 30 other markets where it would like to be. These include such cities as Boston, New York City, Wilmington, Del., Richmond, Va., and Raleigh-Durham, N.C.

Whitacre said Nordstrom will also focus on catalog and Internet sales. The catalog division, Nordstrom Direct, last year posted $200 million in sales.

Responding to shareholders' questions about international expansion, Whitacre said Nordstrom will have its hands full with the U.S. market for at least five to 10 years. But he acknowledged that Canada, particularly Toronto, is very attractive.

"Canada at some point seems like a natural potential" market, Whitacre said. But, he added, "We know the U.S. and we know the dynamics in the U.S."