Total sales for the fourth quarter of 2005 increased 9.3%, to $2.3 billion, compared to sales of $2.1 billion in the same period last year. Same-store sales increased 5.8% for the quarter, higher than the company's 1% to 3% same-store sales guidance. Gross profit, as a percent of sales, increased 81 basis points, primarily because of sales leverage on buying and occupancy costs.

Nordstrom executive vice president and CFO Michael G. Koppel said during the retailer's earnings conference call that all geographic regions and most merchandise categories posted positive comp growth. Specifically, the Southern states were strong performers and merchandise sales were led by cosmetics, accessories, women and kids' shoes and men's apparel. During the fourth quarter, Nordstrom opened one store in Dallas at North Park Center, bringing the total gross square footage to 20 million sf at the end of the fiscal year.

For the fiscal year ended January 28, 2006, net earnings increased 40% to $551.3 million compared to net earnings of $393.5 million for the same period last year. Earnings per share for the same periods were $1.98 and $1.38, respectively. Total sales for the year increased 8.3% to $7.7 billion compared to prior year sales of $7.1 billion. Same-store sales increased 6%.