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RAPAPORT... Retailer Nordstrom reported that revenue jumped 13.3 percent year on year to $3.7 billion for the fourth quarter that ended on February 2. Same-store sales rose 6.3 percent company-wide; however, full-line Nordstrom comparable-store sale increased only 2.2 percent. Profit surged 20 percent to $284 million or $1.40 per diluted share. Gross profit, as a percentage of net sales, was flat. Markdown improvements were offset by higher expenses associated with the retailer's ''Fashion Rewards'' program, which generated incremental sales and attracted new members. Top performing merchandise categories included men’s apparel, cosmetics, children's apparel and women’s apparel.  For the full year, Nordstrom's sales rose 12.1 percent to a record high of $11.8 billion and same-store sales increased 7.3 percent. Earnings rose 7.7 percent to $735 million. Return on invested capital (ROIC) for the 12 months ending on February 2, was 13.9 percent, up from 13.3 percent in 2011. Nordstrom launched an aggressive expansion plan with capital expenditures, or the net of property incentives, for 2013 to be between $750 million and $790 million, or nearly twice the expenditures of 2012. The majority of the increase is attributable to Nordstrom Rack and full-line store growth, improvements to its ecommerce delivery and fulfillment mechanism and its planned Manhattan store. During 2013, Nordstrom plans to complete a relocation of its full-line store in Glendale, California. Nordstrom Rack stores are scheduled to open in Ann Arbor and Auburn Hills, Michigan; Birmingham, Alabama; Boston, Massachusetts; Columbia, Maryland; Portland, Maine; Upland, Concord and Culver City California; Washington D.C.; Atlanta, Georgia; Cleveland and Columbus, Ohio; El Paso, Texas; Honolulu, Hawaii and Naples, Florida. Nordstrom expects infrastructure expenses totaling between $20 million and $25 million, related to entering Canada in 2013 and incremental costs from the accelerated Rack store growth. The retailer will benefit from a 53-week fiscal year in 2013; however, anticipated sales growth rates are weaker than 2012. Nordstrom expects sale growth of between 4.5 percent and 6.5 percent, with same-store sales up 3.5 percent to 5.5 percent. Its guidance also accounted for a 10 to 30 basis point decrease in gross profit margin. Earnings per diluted share, excluding the impact of share repurchases, are expected to fall in the range of $3.65 to $3.80 compared with $3.56 in 2012.
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