Erik Nordstrom32nd Annual Footwear News Achievement Awards, Presentation, New York, USA - 04 Dec 2018

Nordstrom Inc. has elevated Erik Nordstrom to become the sole chief executive officer, while his brother Pete has been named president and chief brand officer.

The new titles reflect their current and ongoing responsibilities. Previously, they were both co-ceo’s.

Erik Nordstrom said: “These titles help clarify our respective roles, as we strive to maximize our impact both as individual leaders and as a team. Pete and I continue to be partners in ensuring Nordstrom’s success, and we are both focused on executing our long-term plan. We look forward to continue working with our board to deliver on our shared vision for the future of Nordstrom.”

The company also reported that its fourth-quarter net earnings dropped to $193 million compared with $248 million during the same period in fiscal 2018. Fiscal 2019 included $29 million of charges, after tax, primarily representing non-cash asset write-downs resulting from the integration of Trunk Club in addition to debt refinancing costs.

Earnings before interest and taxes was $299 million, or 6.7 percent of net sales, compared with $333 million, or 7.6 percent of net sales for the same period in fiscal 2018. Excluding integration charges of $32 million, EBIT margin slightly decreased compared to prior year.

Net sales grew 1.3 percent and improved by more than 400 basis points from year-to-date trends, with growth in Nordstrom’s full-price and off-price businesses.

Full-price sales increased 1 percent. In off-price, sales increased 1.8 percent.

Digital sales grew 9 percent and represented 35 percent of sales. Online order pickup contributed more than half of digital sales growth in full-price.

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