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AAA says drivers becoming more afraid of automated vehicles
Us residents are becoming additional frightened of automated motor vehicles, and several misunderstand the abilities of driver-guide technological innovation, according to a study released Thursday.
The share of respondents who described on their own as frightened to journey in automatic autos jumped to 68 percent this calendar year in the American Vehicle Association’s annual automated car study, from 55 percent in the previous 12 months. The study canvassed roughly 1,000 American grownups.
“We had been not anticipating this kind of a extraordinary decline in rely on from previous several years,” stated Greg Brannon, director of automotive exploration for AAA. Nevertheless, “with the number of substantial-profile crashes that have transpired from overreliance on present car systems, this is just not fully astonishing.”
The effects arrive as automakers equip autos with much more advanced driver-aid characteristics that have developed from automated emergency braking to refined cruise-management techniques that allow for for some arms-free and foot-absolutely free driving.
Several companies have experienced to grapple with injurious and sometimes fatal crashes, govt probes and lawsuits tied to autonomous and driver-help technologies about the last couple of years.
In March 2022, a Cruise automated vehicle braked although traveling downhill as a bicycle owner approached from powering in San Francisco. The bicycle owner struck the rear window of the Cruise, fell to the ground and sustained “major” accidents, in accordance to knowledge from the Nationwide Freeway Targeted traffic Safety Administration.
In May possibly, a Waymo-operated automated semitruck and trailer struck a different semitruck and trailer in Ennis, Texas, and “an particular person associated in the crash was transported from the scene to a hospital for professional medical cure,” in accordance to information from NHTSA.
Past month, a Tesla driver died following colliding with a fireplace truck in California. While it truly is not still apparent if the driver was employing Tesla’s innovative driver assistance method, Autopilot, the situation mirrors other individuals in which Tesla’s driver-aid technological know-how unsuccessful to detect parked unexpected emergency cars, and NHTSA has questioned the firm for extra details.
NHTSA is investigating doable problems with Tesla’s Autopilot technique connected to collisions with unexpected emergency cars, and last thirty day period Tesla recalled approximately 363,000 vehicles outfitted with or awaiting set up of its “Entire Self-Driving” beta software program. The application presents many driver-guide and basic safety options but involves drivers to be responsible for the procedure of their automobiles at all situations.
The survey also illustrated some misunderstanding of driver-assist technologies. Just one in 10 drivers claimed they imagined they could buy autos that can travel on their own even though the driver is asleep. No this kind of vehicle is on the industry, and the study launch proposed that response could be relevant to “deceptive or puzzling names of car programs” that are bought nowadays, like Tesla’s “Autopilot,” Volvo’s “Pilot Support” and Nissan’s “ProPILOT.” AAA said 22 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of the respondents believe names like these describe functions that make it possible for the car to generate itself with out any human supervision.
Nevertheless, most persons who responded to the survey would “absolutely” or “in all probability” want driver-support engineering such as computerized braking and blind-location warning in their next auto purchases despite their panic and confusion.
Splatter-proof room, pots of human soup: The grisly murder of Hong Kong model Abby Choi
By India Nowadays World Desk: Four men and women charged in connection with the killing of 28-year-outdated Hong Kong product Abby Choi appeared in court on Monday morning, soon after police observed components of her human body at a village house.
Hong Kong police mentioned on Sunday they had charged 3 adult males, aged 28-65, with murder, and a 63-yr-old lady with one particular depend of obstructing the situation.
All those charged with Choi’s killing integrated her ex-spouse, Alex Kwong, Kwong’s brother Anthony and their father Kwong Kau, police reported. All were denied bail, the courtroom ruled and adjourned the listening to of the case to May perhaps 8.
The grisly particulars of the case have sent shockwaves across a metropolis, typically regarded as a single of the most secure in the world, becoming widely mentioned on social media in mainland China and Taiwan as properly as in the information media throughout the planet.
Choi’s husband or wife, Tam Chuk Kwan, also recognised as Chris Tam, described her as a “type-hearted and excellent person who usually desired to support many others”.
“She supported me and liked me pretty much,” claimed Mr Tam by way of a loved ones close friend.
“She also introduced up four sweet and obedient little ones. It has been a blessing to be Abby’s loved ones or mate,” he was quoted by the Independent as expressing.
In pictures and videos posted to her Instagram account this February, Abby Choi poses on a balcony from the Paris skyline, dines with previous buddies at a deluxe Art Deco restaurant, and is chauffeured to a fashion occasion in which crowds of photographers wait around outdoors the location.
“From Hong Kong to the deal with of L’Officiel Monaco, my journey as a design and style icon proceeds. Grateful for this recognition and the ongoing aid together the way,” Choi wrote on 14 February, exhibiting herself on the include of a French style magazine.
Choi’s mate Bernard Cheng instructed the Linked Push, “I haven’t imagined that a man or woman who’s so great, so entire of really like, so innocent, a particular person who does not do everything negative, will be killed like this. My coronary heart is nonetheless weighty. I are not able to snooze nicely.”
ABBY CHOI AND HER Relationship WITH Previous Husband
Choi and Alex Kwong ended up married in 2012, when she was only 18 a long time aged and he was roughly the similar age. They had two sons together, the elder of whom is now 10.
The pair divorced some time prior to 2016, and Choi went on to commence a partnership with Tam Chuk Kwan, whose father had established a properly-recognised everyday restaurant chain.
Even immediately after divorce, Choi preserved near ties to the Kwongs. Police say that she purchased a four-bed room, 1,820-sq.-foot luxury apartment for the family members and the two young children in Hong Kong’s distinctive Kandoorie Hill neighbourhood, as perfectly as serving to her previous brother-in-legislation invest in yet another house.
In accordance to Singapore newspaper The Straits Times, she at a single place ran a pancake stall with Anthony Kwong, who also served as her personalized driver.
Media studies said the model would from time to time go on holiday break journeys with Kwong and his household.
A DISPUTE Above Property
In accordance to the investigating officers, the relationship amongst Choi and Kwong began to sour previous yr, when Choi created plans to provide the Kandoorie Hill apartment. While paid for by Choi, it had been registered in the name of Alex Kwong’s father, Kwong Kau, allegedly in purchase to stay away from nearly $8m Hong Kong dollars (US$1m) in stamp duty.
Home finance loan documents claimed by the Hong Kong news web page HK01 clearly show that Kau acquired the flat in July 2019 for virtually HK$73m, and had compensated off the entire home loan by October that 12 months.
Even even though Choi promised to obtain the Kwongs a new property, her approach was satisfied with fierce resistance from Kau, a regulation enforcement supply advised the Early morning Put up.
In accordance to another regional newspaper, Oriental Day by day Information, the feud led Choi to consult with a law firm, who told her that as long as she could demonstrate that she paid out for the property, she could continue to obtain dollars from its sale.
It is not clear no matter whether or not the apartment was at any time offered.
Regardless, law enforcement allege that this was the spark for Kwong Kau to start out masterminding a plot from his former daughter-in-legislation.
ABBY CHOI’s Previous Spouse, Spouse and children PLOTTED HER MURDER
According to investigators in Hong Kong, the model’s former husband and two customers of his household were being plotting to murder her when she returned to Hong Kong. Officers assert the trio had rented an condominium in the village of Lung Mei Tsuen and turned it into a splatter-evidence physique disposal workshop the place areas of Choi’s corpse were being later discovered concealed in pots of soup.
Officials additional mentioned the equipment applied to dismember human bodies have been located in the flat, together with meat grinders, chainsaws, extended raincoats, gloves, and masks.
The suspects included the walls of the flat with a sail and place on encounter shields and raincoats so that they would not get bloodstained by dismembering the overall body.
Alex Kwong’s mom, 63-yr-previous Jenny Li Sui-heun, was also billed with perverting the course of justice for allegedly destroying proof.
WHAT Law enforcement Uncovered AT THE FLAT
When the law enforcement were educated of the murder, they frequented the villaged and identified a macabre butcher’s shop geared up with a meat grinder, an electrical observed, two sorts of chopper, a hammer, deal with shields, and black raincoats. They also located a handbag which belonged to Choi.
In the refrigerator, there had been two dismembered human legs, as effectively as two pots comprehensive of soup, containing carrots, environmentally friendly radishes, and minced meat that investigators suspected to be human remains.
When the soup was totally analysed later on at a law enforcement facility, a cranium and various ribs have been also located in it. The again of the cranium experienced a large hole in it, and investigators now imagine that this was the blow that killed Choi when she within the 7-seater auto.
Kau, Anthony, and Choi’s previous mom-in-regulation Jenny Li ended up swiftly arrested, but Alex Kwong was nowhere to be discovered, and a manhunt ensued.
HOW Police ARRESTED CHOI’s Previous IN-Laws
Kwong Kau is a former Hong Kong police sergeant who retired from the pressure in 2005, getting gained a medal for long assistance in 2001.
The Chinese-language newspaper Sin Chew Daily alleges that he was compelled to resign immediately after becoming accused of sexually assaulting a girl.
On Saturday 25 February, officers discovered that Choi’s previous father-in-legislation Kwong was allegedly scheduling to escape the metropolis by speedboat. He was intercepted at the Tung Chung Enhancement Pier on Hong Kong’s western island of Lantau, in close proximity to the worldwide airport.
According to the Early morning Put up, Mr Kwong was arrested with HK$500,000 in dollars and several luxury watches value a complete of approximately HK$4m.
Law enforcement have given that arrested a 41-12 months-old yacht rental staff named Lam on suspicion of aiding Kwong’s flight, for an alleged cost of HK$100,000
That identical afternoon, about 100 law enforcement officers descended on a clifftop graveyard east of the metropolis centre known as Junk Bay Cemetery, which Kau and Anthony are suspected to have frequented on 22 February.
Exercise 1.5 times more effective than drugs for depression, anxiety
- A huge new analysis of meta-scientific studies finds that workout is much more beneficial for situations this sort of as anxiousness and melancholy than typical psychotherapy or medicines.
- The new review located that fundamentally all kinds of physical exercise generated significant mental overall health benefits.
- Shorter, higher depth training packages generated the greatest effect.
- Training provided the biggest psychological health and fitness reward to people today with depression, or who experienced been diagnosed with HIV and kidney illness, pregnant and postpartum women, and or else balanced grown ups.
An expansive assessment of current investigation concludes that physical exercise really should be seen as a to start with-decision therapy for folks residing with psychological health difficulties. The investigation distills the conclusions of virtually 100 meta-assessments of randomized managed trials.
Bodily activity is 1.5 times additional efficient at lessening mild-to-moderate signs and symptoms of melancholy, psychological tension, and nervousness than medication or cognitive conduct therapy, in accordance to the study’s direct writer, Dr. Ben Singh.
Whilst the benefit of bodily activity for individuals with despair and anxiousness is broadly recognized, it is not viewed as for running these situations as frequently as the study asserts it need to be.
All varieties of physical exercise can benefit mental health and fitness, the analyze found, although bigger-depth activities develop the strongest added benefits.
The research discovered that briefer physical exercise packages offer far more advantages than extended regimens. The benefits of actual physical exercise interventions diminished with longer-duration plans.
This usually means that individuals with psychological health and fitness challenges will need not commit to intense, prolonged-expression exercising to attain the maximum therapeutic reward.
The examine is posted in BJM Sports Medication.
The World Health Firm (WHO)
Approximately 301 million persons have an stress ailment, and this figure includes 58 million children and adolescents. There have been 280 million people living with despair.
Even though the most current mental overall health information from the WHO will come from 2019 right before the COVID-19 pandemic, the WHO’s original estimate for 2020 indicates an enhance in mental wellbeing issues of 26{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}–28{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.
The examine encompassed 97 meta-testimonials of 1,039 randomized controlled trials involving 128,119 contributors.
Whilst this physique of research generally concluded that training developed effects very similar to these of psychotherapy and pharmacotherapy, versions in review methodologies built developing an over-all consensus a challenge.
The trials evaluated differing forms of work out, in varying dosages. They also involved unique populace subgroups, evaluating them to various regulate teams.
In the close, said Dr. Singh, “It confirmed exercise is an efficient way to address mental health and fitness difficulties — and can be even far more powerful than medication or counseling.”
Victoria University’s Professor Vasso Apostolopoulos, who was not concerned in the research, advised Clinical Information Now that there is a increasing human body of exploration supporting the advantages of work out on a range of mood states, which include anxiousness, pressure, and despair.
The result might manifest, she stated, “through physiological and biochemical mechanisms, including endorphins, mitochondria, mammalian target of
The thermogenic speculation indicates that the maximize in overall body temperature that takes place with training may possibly lessen muscular stress and alter neuronal activity, hence lowering anxiety.
Prof. Apostolopoulos also pointed out that training has been revealed to decrease swelling “via quite a few different processes (swelling,
“As a researcher, and seeing the constructive outcomes exercise has on general well being, in individual in psychological wellbeing, work out is a great choice or a complimentary insert-on remedy to present treatments.”
— Prof. Vasso Apostolopoulos
The assessment located that actual physical activity generated a median reduction in psychological overall health difficulties from 42{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 60{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Psychotherapy and pharmacotherapy manufactured a a lot scaled-down improvement, between 22{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and 37{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.
“We uncovered [that] accomplishing 150 minutes each individual 7 days of a variety of sorts of physical activity — such as brisk going for walks, lifting weights and yoga — substantially reduces despair, stress and anxiety, and psychological distress, in contrast to normal treatment, this kind of as medicines,” claimed Dr. Singh.
Exercise available the finest benefits, the evaluation concluded, to people today with depression, HIV and kidney ailment, pregnant and postpartum women of all ages, and usually wholesome grownups.
The research does not discover the added benefits workout could deliver throughout all stages of lifetime. However, it uncovered that it was powerful for everyone 18 and more mature, which includes more mature older people.
“Of take note, for folks who had been more mature than 45+ and/or de-conditioned, quite a few research confirmed that walking 20–40 minutes [each] working day was notably helpful for increasing despair and nervousness,” mentioned Dr. Singh.
The analyze confirms that exercise “should be a reputable 1st-line treatment for psychological health difficulties and not just an ‘added extra’ as it is often found in medicine,” reported Dr. Singh.
Due to the fact psychiatrists’ and psychologists’ know-how is in mental health and fitness, Dr. Singh and Prof. Apostolopoulos agreed that they must spouse with overall health specialists with knowledge of actual physical activity and work out to build a patients’ comprehensive therapy program.
“A remedy strategy may perhaps include things like a mixture of way of life ways, this kind of as training consistently, consuming a balanced diet, and socializing, alongside solutions these types of as psychotherapy and treatment.”
— Dr. Ben Singh
Nordstrom Reports Fourth Quarter 2022 Earnings, Announces Wind-Down of Canadian Business
- Sales and earnings in line with updated fiscal 2022 outlook
- Entering fiscal 2023 with healthier inventory position, down 15 percent from last year and comparable to 2019
- Company provides fiscal 2023 outlook, including plans to wind down Canadian operations to drive profitable growth and enhance shareholder value
SEATTLE, March 2, 2023 /PRNewswire/ — Nordstrom, Inc. (NYSE: JWN) today reported fourth quarter net earnings of $119 million, or $0.74 per diluted share (“EPS”), and earnings before interest and taxes (“EBIT”) of $187 million, or 4.5 percent of sales, for the quarter ended January 28, 2023.
For the fiscal year ended January 28, 2023, net earnings were $245 million and diluted EPS was $1.51, with EBIT of $465 million, or 3.1 percent of sales. Excluding a gain on the sale of the Company’s interest in a corporate office building, Trunk Club wind-down costs and a supply chain technology and related asset impairment charge, all of which were reported in the first three quarters, adjusted EBIT was $502 million, or 3.3 percent of sales, and adjusted EPS was $1.69 for fiscal 2022.1
For the fourth quarter ended January 28, 2023, net sales decreased 4.1 percent versus the same period in fiscal 2021 and gross merchandise value (“GMV”) decreased 4.2 percent. Nordstrom banner net sales decreased 2.4 percent and GMV decreased 2.5 percent compared with the fourth quarter of 2021. Net sales for Nordstrom Rack decreased 8.1 percent.
“We took decisive actions to right-size our inventory as we entered the new year, positioning us for greater agility amidst continuing macroeconomic uncertainty. We also made the difficult decision to wind down operations in our Canadian business. This will enable us to simplify our operations and further increase our focus on driving long-term profitable growth in our core U.S. business,” said Erik Nordstrom, chief executive officer of Nordstrom, Inc. “As we enter fiscal 2023, we are focused on enhancing the customer experience, improving Nordstrom Rack performance, increasing inventory productivity and continuing to advance our supply chain optimization initiatives. We remain confident in the strength of our brands and our ability to drive profitable growth and deliver long-term value to our shareholders.”
In the fourth quarter, men’s apparel had the strongest growth versus 2021. For fiscal 2022, men’s apparel, shoes and women’s apparel had the strongest growth versus 2021.
“While the incremental markdowns in the second half impacted our margins, we are better positioned for a stronger 2023. Our actions have given us increased flexibility to react more quickly to changing customer demand and provide the newness and fashion our customers love,” said Pete Nordstrom, president and chief brand officer of Nordstrom, Inc. “We want to thank our teams for all their hard work helping our customers feel good and look their best.”
As previously announced on February 28, 2023, the board of directors declared a quarterly cash dividend of $0.19 per share to be paid to shareholders of record at the close of business on March 14, 2023, payable on March 29, 2023. During fiscal 2022, the Company repurchased 2.8 million shares of its common stock for $62 million under its existing $500 million share repurchase program. A total capacity of $438 million remains available under this share repurchase authorization.
FOURTH QUARTER 2022 SUMMARY
- Total Company net sales in the fourth quarter decreased 4.1 percent compared with the same period in fiscal 2021. Full-year revenue for fiscal 2022, including retail sales and credit card revenues, increased 5.0 percent compared with fiscal 2021. GMV decreased 4.2 percent in the fourth quarter and increased 5.0 percent in fiscal 2022 when compared with the same periods in 2021.
- For the Nordstrom banner, net sales in the fourth quarter decreased 2.4 percent compared with the same period in fiscal 2021. GMV decreased 2.5 percent and increased 6.9 percent in the fourth quarter and in the fiscal year, respectively, when compared with the same periods in 2021.
- For the Nordstrom Rack banner, net sales decreased 8.1 percent compared with the same period in fiscal 2021. Eliminating store fulfillment for Nordstrom Rack digital orders in the third quarter negatively impacted fourth quarter Rack banner net sales by approximately 500 basis points.
- Digital sales in the fourth quarter decreased 13.1 percent compared with the same period in fiscal 2021. Eliminating store fulfillment for Nordstrom Rack digital orders in the third quarter and sunsetting Trunk Club earlier in fiscal 2022 negatively impacted fourth quarter digital sales by approximately 500 basis points. Digital sales represented 40 percent of total sales during the quarter and 38 percent of sales for the fiscal year.
- Gross profit, as a percentage of net sales, of 33.2 percent decreased 525 basis points compared with the same period in fiscal 2021 primarily due to higher markdown rates, as the Company prioritized rightsizing inventory levels in a highly promotional environment.
- Ending inventory decreased 15.2 percent compared with the same period in fiscal 2021, versus a 4.1 percent decrease in sales.
- Selling, general and administrative (“SG&A”) expenses, as a percentage of net sales, of 31.5 percent decreased 240 basis points compared with the same period in fiscal 2021, primarily due to supply chain expense efficiencies.
- EBIT was $187 million in the fourth quarter of 2022, compared with $299 million during the same period in fiscal 2021, primarily due to higher markdowns, partially offset by supply chain expense efficiencies. EBIT was $465 million for fiscal 2022, and adjusted EBIT of $502 million excluded a gain on the sale of the Company’s interest in a corporate office building, wind-down costs related to Trunk Club and a supply chain technology and related asset impairment charge, all of which were reported in the first three quarters.2 EBIT margin was 4.5 percent of sales for the quarter, which was 235 basis points lower than the fourth quarter of 2021. EBIT margin and adjusted EBIT margin for the fiscal year were 3.1 percent and 3.3 percent, respectively.2
- Interest expense, net, of $27 million decreased from $33 million during the same period in fiscal 2021, due to higher interest income and reduced credit facility borrowings.
- Income tax expense during the fourth quarter was $41 million, or 25.2 percent of pretax earnings, compared with $66 million, or 24.8 percent of pretax earnings, in the same period of fiscal 2021. The full-year income tax rate was 27.2 percent.
- The Company ended the year with $1.5 billion in available liquidity, including $687 million in cash and the full $800 million available on its revolving line of credit, and a leverage ratio of 3.1 times.
STORES UPDATE
During fiscal 2022, the Company opened three stores:
|
City |
Location |
Square Footage (000s) |
Timing of |
|||
|
ASOS | Nordstrom |
||||||
|
Los Angeles, CA |
The Grove |
30 |
May 20, 2022 |
|||
|
Nordstrom Rack |
||||||
|
Phoenix, AZ |
Desert Ridge Marketplace |
24 |
October 27, 2022 |
|||
|
Riverside, CA |
Canyon Springs Marketplace |
30 |
October 27, 2022 |
The Company has also announced plans to open or relocate the following stores:
|
City |
Location |
Square Footage (000s) |
Timing of |
|||
|
Nordstrom Rack |
||||||
|
Birmingham, AL |
The Summit (relocation from River Ridge) |
27 |
Spring 2023 |
|||
|
Los Angeles, CA |
NOHO West |
26 |
Spring 2023 |
|||
|
Chattanooga, TN |
The Terrace at Hamilton Place |
24 |
Spring 2023 |
|||
|
Wichita, KS |
Bradley Fair |
28 |
Spring 2023 |
|||
|
Delray Beach, FL |
Delray Place |
26 |
Spring 2023 |
|||
|
Clovis, CA |
Clovis Crossing |
31 |
Spring 2023 |
|||
|
San Clemente, CA |
San Clemente Plaza |
32 |
Spring 2023 |
|||
|
Las Vegas, NV |
Best in the West |
31 |
Spring 2023 |
|||
|
Union Gap, WA |
Valley Mall |
28 |
Fall 2023 |
|||
|
Olympia, WA |
Cooper Point Marketplace |
32 |
Fall 2023 |
|||
|
Salem, OR |
Willamette Town Center |
25 |
Fall 2023 |
|||
|
Anaheim Hills, CA |
Anaheim Hills Festival |
24 |
Fall 2023 |
|||
|
Overland Park, KS |
Overland Crossing |
27 |
Fall 2023 |
|||
|
San Luis Obispo, CA |
SLO Promenade |
24 |
Fall 2023 |
|||
|
Allen, TX |
The Village at Allen |
29 |
Fall 2023 |
|||
|
Visalia, CA |
Sequoia Mall |
29 |
Fall 2023 |
|||
|
Pinole, CA |
Pinole Vista Crossing |
23 |
Fall 2023 |
|||
|
Denton, TX |
Denton Crossing |
25 |
Fall 2023 |
|||
|
Aurora, CO |
Southlands |
30 |
Fall 2023 |
|||
|
Kennesaw, GA |
Barrett Place |
25 |
Spring 2024 |
The Company had the following store counts as of quarter-end:
|
January 28, 2023 |
January 29, 2022 |
||
|
Nordstrom |
|||
|
Nordstrom – U.S. |
94 |
94 |
|
|
Nordstrom – Canada |
6 |
6 |
|
|
Nordstrom Local service hubs |
7 |
7 |
|
|
ASOS | Nordstrom |
1 |
— |
|
|
Nordstrom Rack |
|||
|
Nordstrom Rack – U.S. |
241 |
240 |
|
|
Nordstrom Rack – Canada |
7 |
7 |
|
|
Last Chance clearance stores |
2 |
2 |
|
|
Total |
358 |
356 |
|
|
Gross store square footage |
27,571,000 |
27,555,000 |
|
During the fourth quarter, the Company closed one Nordstrom Rack store.
NORDSTROM WINDS DOWN CANADIAN OPERATIONS
As part of its initiatives to drive long-term profitable growth and enhance shareholder value, and after careful consideration of all reasonably available options, the Company also announced today it has decided to discontinue support for Nordstrom Canada’s business operations.3
“We regularly review every aspect of our business to make sure that we are set up for success,” said Erik Nordstrom. “We entered Canada in 2014 with a plan to build and sustain a long-term business there. Despite our best efforts, we do not see a realistic path to profitability for the Canadian business. We want to thank our team for their performance and dedication in serving customers in Canada. This decision will simplify our structure, intensify focus on our growth and profitability goals and position us to create greater value for our shareholders.”
Accordingly, Nordstrom Canada has commenced a wind-down of its operations, obtaining an Initial Order from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (“CCAA”) earlier today to facilitate the wind-down in an orderly fashion.
Nordstrom Canada intends to wind down its Nordstrom and Nordstrom Rack stores across Canada, with the help of a third-party liquidator, and its Canadian e-commerce platform. The e-commerce platform will cease operations on March 2, 2023. The in-store wind-down is anticipated to be completed by late June 2023.
The Company expects that Nordstrom Canada will be deconsolidated from the Company’s financial statements as of the date of the CCAA filing. The Company expects to report approximately $300 million to $350 million of pre-tax charges related to the wind-down in the first quarter of fiscal 2023, driven primarily by the write-down of the Company’s investment in Nordstrom Canada. The wind-down is expected to result in an approximately $400 million decline in total Company net sales and a $35 million improvement in total Company EBIT in fiscal 2023, relative to fiscal 2022, excluding the aforementioned charges associated with the wind-down.
Nordstrom Canada operates six Nordstrom stores and seven Nordstrom Rack stores, as well as the Nordstrom.ca website, and employs approximately 2,500 people.
FISCAL YEAR 2023 OUTLOOK
The Company is providing the following financial outlook for fiscal 2023, which includes a 53rd week. The Company’s outlook also includes the anticipated impact of the wind-down of Canadian operations:
- Revenue decline, including retail sales and credit card revenues, of 4.0 to 6.0 percent versus fiscal 2022, including an approximately 250 basis point negative impact from the wind-down of Canadian operations and an approximately 130 basis point positive impact from the 53rd week
- EBIT margin (including the negative impact of charges related to the wind-down of Canadian operations) of 1.2 to 2.1 percent of sales
- Adjusted EBIT margin (excluding charges related to the wind-down of Canadian operations) of 3.7 to 4.2 percent of sales4
- Income tax rate of approximately 32 percent, including an approximately 500 basis point unfavorable impact from the one-time Canada charges
- EPS (including the negative impact of charges related to the wind-down of Canadian operations) of $0.20 to $0.80, excluding the impact of share repurchase activity, if any
- Adjusted EPS (excluding charges related to the wind-down of Canadian operations) of $1.80 to $2.20, excluding the impact of share repurchase activity, if any4
CONFERENCE CALL INFORMATION
The Company’s senior management will host a conference call to provide a business update and to discuss fourth quarter 2022 financial results and fiscal year 2023 outlook at 4:45 p.m. Eastern Standard Time today. To listen to the live call online and view the speakers’ prepared remarks and the conference call slides, visit the Investor Relations section of the Company’s corporate website at investor.nordstrom.com. An archived webcast with the speakers’ prepared remarks and the conference call slides will be available in the Quarterly Results section for one year. Interested parties may also dial 201-689-8354. A telephone replay will be available beginning approximately three hours after the conclusion of the call by dialing 877-660-6853 or 201-612-7415 and entering Conference ID 13735859, until the close of business on March 9, 2023.
ABOUT NORDSTROM
At Nordstrom, Inc. (NYSE: JWN), we exist to help our customers feel good and look their best. Since starting as a shoe store in 1901, how to best serve customers has been at the center of every decision we make. This heritage of service is the foundation we’re building on as we provide convenience and true connection for our customers. Our digital-first platform enables us to serve customers when, where and how they want to shop – whether that’s in-store at more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations or digitally through our Nordstrom and Rack apps and websites. Through it all, we remain committed to leaving the world better than we found it.
Certain statements in this press release contain or may suggest “forward-looking” information (as defined in the Private Securities Litigation Reform Act of 1995) that involves risks and uncertainties that could cause results to be materially different from expectations. The words “will,” “may,” “designed to,” “outlook,” “believes,” “should,” “targets,” “anticipates,” “assumptions,” “plans,” “expects” or “expectations,” “intends,” “estimates,” “forecasts,” “guidance” and similar expressions identify certain of these forward-looking statements. The Company also may provide forward-looking statements in oral statements or other written materials released to the public. All statements contained or incorporated in this press release or in any other public statements that address such future events or expectations are forward-looking statements. Important factors that could cause actual results to differ materially from these forward-looking statements are detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2022, its Form 10-Qs for the fiscal quarters ended April 30, 2022, July 30, 2022 and October 29, 2022, and our Form 10-K for the fiscal year ended January 28, 2023, to be filed with the SEC on or about March 10, 2023. In addition, forward-looking statements contained in this release may be impacted by the actual outcome of events or occurrences related to the wind-down of business operations in Canada. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances. In addition, the actual timing, price, manner and amounts of future share repurchases, if any, will be subject to the discretion of our board of directors, contractual commitments, market and economic conditions and applicable Securities and Exchange Commission rules.
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1Adjusted EBIT, adjusted EBIT margin and adjusted EPS are non-GAAP financial measures. Refer to the “Adjusted EBIT, Adjusted EBITDA, Adjusted EBIT Margin and Adjusted EPS” section of this release for additional information as well as reconciliations between the Company’s GAAP and non-GAAP financial results. |
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2Adjusted EBIT and adjusted EBIT margin are non-GAAP financial measures. Refer to the “Adjusted EBIT, Adjusted EBITDA, Adjusted EBIT Margin and Adjusted EPS” section of this release for additional information as well as reconciliations between the Company’s GAAP and non-GAAP financial results. |
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3Nordstrom Canada is comprised of Nordstrom Canada Retail, Inc., Nordstrom Canada Holdings, LLC and Nordstrom Canada Holdings II, LLC. |
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4Adjusted EBIT margin and adjusted EPS are non-GAAP financial measures. Refer to the “Fiscal Year 2023 Outlook – Adjusted EBIT Margin and Adjusted EPS” section of this release for additional information as well as reconciliations between the Company’s GAAP and non-GAAP financial expectations. |
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NORDSTROM, INC. |
|||||
|
Quarter Ended |
Year Ended |
||||
|
January 28, 2023 |
January 29, 2022 |
January 28, 2023 |
January 29, 2022 |
||
|
Net sales |
$4,200 |
$4,382 |
$15,092 |
$14,402 |
|
|
Credit card revenues, net |
119 |
104 |
438 |
387 |
|
|
Total revenues |
4,319 |
4,486 |
15,530 |
14,789 |
|
|
Cost of sales and related buying and occupancy costs |
(2,807) |
(2,699) |
(10,019) |
(9,344) |
|
|
Selling, general and administrative expenses |
(1,325) |
(1,488) |
(5,046) |
(4,953) |
|
|
Earnings before interest and income taxes |
187 |
299 |
465 |
492 |
|
|
Interest expense, net |
(27) |
(33) |
(128) |
(246) |
|
|
Earnings before income taxes |
160 |
266 |
337 |
246 |
|
|
Income tax expense |
(41) |
(66) |
(92) |
(68) |
|
|
Net earnings |
$119 |
$200 |
$245 |
$178 |
|
|
Earnings per share: |
|||||
|
Basic |
$0.75 |
$1.26 |
$1.53 |
$1.12 |
|
|
Diluted |
$0.74 |
$1.23 |
$1.51 |
$1.10 |
|
|
Weighted-average shares outstanding: |
|||||
|
Basic |
160.1 |
159.5 |
160.1 |
159.0 |
|
|
Diluted |
161.6 |
162.4 |
162.1 |
162.5 |
|
|
Percent of net sales: |
|||||
|
Gross profit |
33.2 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
38.4 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
33.6 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
35.1 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
Selling, general and administrative expenses |
31.5 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
34.0 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
33.4 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
34.4 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
Earnings before interest and income taxes |
4.5 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
6.8 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
3.1 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
3.4 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
NORDSTROM, INC. |
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|
January 28, 2023 |
January 29, 2022 |
|
|
Assets |
||
|
Current assets: |
||
|
Cash and cash equivalents |
$687 |
$322 |
|
Accounts receivable, net |
265 |
255 |
|
Merchandise inventories |
1,941 |
2,289 |
|
Prepaid expenses and other current assets |
316 |
306 |
|
Total current assets |
3,209 |
3,172 |
|
Land, property and equipment (net of accumulated depreciation of $8,289 and $7,737) |
3,351 |
3,562 |
|
Operating lease right-of-use assets |
1,470 |
1,496 |
|
Goodwill |
249 |
249 |
|
Other assets |
466 |
390 |
|
Total assets |
$8,745 |
$8,869 |
|
Liabilities and Shareholders’ Equity |
||
|
Current liabilities: |
||
|
Accounts payable |
$1,238 |
$1,529 |
|
Accrued salaries, wages and related benefits |
291 |
383 |
|
Current portion of operating lease liabilities |
258 |
242 |
|
Other current liabilities |
1,203 |
1,160 |
|
Total current liabilities |
2,990 |
3,314 |
|
Long-term debt, net |
2,856 |
2,853 |
|
Non-current operating lease liabilities |
1,526 |
1,556 |
|
Other liabilities |
634 |
565 |
|
Commitments and contingencies |
||
|
Shareholders’ equity: |
||
|
Common stock, no par value: 1,000 shares authorized; 160.1 and 159.4 shares issued and outstanding |
3,353 |
3,283 |
|
Accumulated deficit |
(2,588) |
(2,652) |
|
Accumulated other comprehensive loss |
(26) |
(50) |
|
Total shareholders’ equity |
739 |
581 |
|
Total liabilities and shareholders’ equity |
$8,745 |
$8,869 |
|
NORDSTROM, INC. |
||
|
Year Ended |
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|
January 28, 2023 |
January 29, 2022 |
|
|
Operating Activities |
||
|
Net earnings |
$245 |
$178 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
||
|
Depreciation and amortization expenses |
604 |
615 |
|
Asset impairment |
80 |
— |
|
Right-of-use asset amortization |
185 |
175 |
|
Deferred income taxes, net |
(83) |
(11) |
|
Stock-based compensation expense |
59 |
79 |
|
Other, net |
(46) |
81 |
|
Change in operating assets and liabilities: |
||
|
Accounts receivable, net |
23 |
(10) |
|
Merchandise inventories |
265 |
(383) |
|
Prepaid expenses and other assets |
(24) |
542 |
|
Accounts payable |
(190) |
(400) |
|
Accrued salaries, wages and related benefits |
(94) |
31 |
|
Other current liabilities |
44 |
112 |
|
Lease liabilities |
(269) |
(284) |
|
Other liabilities |
147 |
(20) |
|
Net cash provided by operating activities |
946 |
705 |
|
Investing Activities |
||
|
Capital expenditures |
(473) |
(506) |
|
Proceeds from the sale of assets and other, net |
80 |
(15) |
|
Net cash used in investing activities |
(393) |
(521) |
|
Financing Activities |
||
|
Proceeds from revolving line of credit |
100 |
400 |
|
Payments on revolving line of credit |
(100) |
(400) |
|
Proceeds from long-term borrowings |
— |
675 |
|
Principal payments on long-term borrowings |
— |
(1,100) |
|
Change in cash book overdrafts |
(14) |
(32) |
|
Cash dividends paid |
(119) |
— |
|
Payments for repurchase of common stock |
(62) |
— |
|
Proceeds from issuances under stock compensation plans |
29 |
14 |
|
Tax withholding on share-based awards |
(16) |
(15) |
|
Make-whole premium payment and other, net |
(4) |
(86) |
|
Net cash used in financing activities |
(186) |
(544) |
|
Effect of exchange rate changes on cash and cash equivalents |
(2) |
1 |
|
Net increase (decrease) in cash and cash equivalents |
365 |
(359) |
|
Cash and cash equivalents at beginning of year |
322 |
681 |
|
Cash and cash equivalents at end of year |
$687 |
$322 |
NORDSTROM, INC.
ADJUSTED EBIT, ADJUSTED EBITDA, ADJUSTED EBIT MARGIN
AND ADJUSTED EPS (NON-GAAP FINANCIAL MEASURES)
(unaudited; amounts in millions, except per share amounts)
The following are key financial metrics and, when used in conjunction with GAAP measures, we believe they provide useful information for evaluating our core business performance, enable comparison of financial results across periods and allow for greater transparency with respect to key metrics used by management for financial and operational decision-making. Adjusted earnings before interest and income taxes (“EBIT”), adjusted earnings before interest, income taxes, depreciation and amortization (“EBITDA”), adjusted EBIT as a percent of net sales (“adjusted EBIT margin”) and adjusted EPS exclude certain items that we do not consider representative of our core operating performance. The financial measure calculated under GAAP which is most directly comparable to adjusted EBIT and adjusted EBITDA is net earnings. The financial measure calculated under GAAP which is most directly comparable to adjusted EBIT margin is net earnings as a percent of net sales. The financial measure calculated under GAAP which is most directly comparable to adjusted EPS is earnings per diluted share.
Adjusted EBIT, adjusted EBITDA, adjusted EBIT margin and adjusted EPS are not measures of financial performance under GAAP and should be considered in addition to, and not as a substitute for, net earnings, net earnings as a percent of net sales, operating cash flows, earnings per share, earnings per diluted share or other financial measures performed in accordance with GAAP. Our method of determining non-GAAP financial measures may differ from other companies’ financial measures and therefore may not be comparable to methods used by other companies. The following is a reconciliation of net earnings to adjusted EBIT and adjusted EBITDA and net earnings as a percent of net sales to adjusted EBIT margin:
|
Quarter Ended |
Year Ended |
||||
|
January 28, 2023 |
January 29, 2022 |
January 28, 2023 |
January 29, 2022 |
||
|
Net earnings |
$119 |
$200 |
$245 |
$178 |
|
|
Income tax expense |
41 |
66 |
92 |
68 |
|
|
Interest expense, net |
27 |
33 |
128 |
246 |
|
|
Earnings before interest and income taxes |
187 |
299 |
465 |
492 |
|
|
Supply chain impairment |
— |
— |
70 |
— |
|
|
Trunk Club wind-down costs |
— |
— |
18 |
— |
|
|
Gain on sale of interest in a corporate office building |
— |
— |
(51) |
— |
|
|
Adjusted EBIT |
187 |
299 |
502 |
492 |
|
|
Depreciation and amortization expenses |
151 |
138 |
604 |
615 |
|
|
Amortization of developer reimbursements |
(17) |
(19) |
(72) |
(78) |
|
|
Adjusted EBITDA |
$321 |
$418 |
$1,034 |
$1,029 |
|
|
Net sales |
$4,200 |
$4,382 |
$15,092 |
$14,402 |
|
|
Net earnings as a {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of net sales |
2.8 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
4.6 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
1.6 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
1.2 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
EBIT margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
4.5 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
6.8 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
3.1 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
3.4 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
Adjusted EBIT margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
4.5 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
6.8 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
3.3 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
3.4 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
The following is a reconciliation of earnings per diluted share to adjusted EPS:
|
Quarter Ended |
Year Ended |
||||
|
January 28, 2023 |
January 29, 2022 |
January 28, 2023 |
January 29, 2022 |
||
|
Earnings per diluted share |
$0.74 |
$1.23 |
$1.51 |
$1.10 |
|
|
Supply chain impairment |
— |
— |
0.44 |
— |
|
|
Trunk Club wind-down costs |
— |
— |
0.11 |
— |
|
|
Gain on sale of interest in a corporate office building |
— |
— |
(0.31) |
— |
|
|
Debt refinancing charges included within interest expense, net |
— |
— |
— |
0.54 |
|
|
Income tax impact on adjustments1 |
— |
— |
(0.06) |
(0.13) |
|
|
Adjusted EPS |
$0.74 |
$1.23 |
$1.69 |
$1.51 |
|
|
1 |
The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate for the respective non-GAAP adjustment. |
NORDSTROM, INC.
SUMMARY OF NET SALES
(unaudited; amounts in millions)
Our Nordstrom brand includes Nordstrom.com, Nordstrom U.S. stores, Canada, which includes Nordstrom.ca, Nordstrom Canadian stores and Nordstrom Rack Canadian stores, Nordstrom Local, ASOS | Nordstrom and, prior to October 2022, TrunkClub.com. Our Nordstrom Rack brand includes NordstromRack.com, Nordstrom Rack U.S. stores and Last Chance clearance stores. The following table summarizes net sales for the quarter and year ended January 28, 2023, compared with the quarter and year ended January 29, 2022:
|
Quarter Ended |
Year Ended |
||||
|
January 28, 2023 |
January 29, 2022 |
January 28, 2023 |
January 29, 2022 |
||
|
Net sales: |
|||||
|
Nordstrom |
$2,955 |
$3,027 |
$10,279 |
$9,640 |
|
|
Nordstrom Rack |
1,245 |
1,355 |
4,813 |
4,762 |
|
|
Total net sales |
$4,200 |
$4,382 |
$15,092 |
$14,402 |
|
|
Net sales (decrease) increase: |
|||||
|
Nordstrom |
(2.4 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}) |
23.3 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
6.6 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
37.8 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
Nordstrom Rack |
(8.1 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}) |
23.5 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
1.1 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
41.7 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
Total Company |
(4.1 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}) |
23.4 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
4.8 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
39.1 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
Digital sales as {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of total net sales1 |
40 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
44 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
38 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
42 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
1 |
Sales conducted through a digital platform such as our websites or mobile apps. Digital sales may be self-guided by the customer, as in a traditional online order, or facilitated by a salesperson using a virtual styling or selling tool. Digital sales may be delivered to the customer or picked up in our Nordstrom stores, Nordstrom Rack stores or Nordstrom Local service hubs. Digital sales also includes a reserve for estimated returns. |
NORDSTROM, INC.
FISCAL YEAR 2023 OUTLOOK – ADJUSTED EBIT MARGIN AND ADJUSTED EPS
(NON-GAAP FINANCIAL MEASURES)
(unaudited)
Our adjusted EBIT as a percent of net sales (“adjusted EBIT margin”) and adjusted EPS outlook for fiscal year 2023 excludes the impact from certain items that we do not consider representative of our core operating performance. These items include the wind-down of our Canadian operations in 2023.
The following is a reconciliation of expected net earnings as a percent of net sales to expected adjusted EBIT margin included within our Fiscal Year 2023 Outlook:
|
53 Weeks Ending February 3, 2024 |
|||
|
Low |
High |
||
|
Expected net earnings as a {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of net sales |
0.3 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
0.9 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
Income tax expense |
0.1 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
0.4 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
Interest expense, net |
0.8 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
0.8 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
Expected EBIT as a {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of net sales |
1.2 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
2.1 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
Wind-down of Canadian operations |
2.5 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
2.1 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
|
Expected adjusted EBIT margin |
3.7 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
4.2 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
The following is a reconciliation of expected EPS to expected adjusted EPS included within our Fiscal Year 2023 Outlook:
|
53 Weeks Ending February 3, 2024 |
|||
|
Low |
High |
||
|
Expected EPS |
$0.20 |
$0.80 |
|
|
Wind-down of Canadian operations |
2.15 |
1.84 |
|
|
Income tax impact on adjustment |
(0.55) |
(0.44) |
|
|
Expected adjusted EPS |
$1.80 |
$2.20 |
|
NORDSTROM, INC.
ADJUSTED RETURN ON INVESTED CAPITAL (“ADJUSTED ROIC”)
(NON-GAAP FINANCIAL MEASURE)
(unaudited; dollar amounts in millions)
We believe that Adjusted ROIC is a useful financial measure for investors in evaluating the efficiency and effectiveness of the capital we have invested in our business to generate returns over time. In addition, we have incorporated it in our executive incentive measures, and we believe it is an important indicator of shareholders’ return over the long term.
Adjusted ROIC is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for, return on assets, net earnings, total assets or other GAAP financial measures. Our method of calculating a non-GAAP financial measure may differ from other companies’ methods and therefore may not be comparable to those used by other companies. The financial measure calculated under GAAP which is most directly comparable to Adjusted ROIC is return on assets. The following shows the components to reconcile the return on assets calculation to Adjusted ROIC:
|
Four Quarters Ended |
||
|
January 28, 2023 |
January 29, 2022 |
|
|
Net earnings |
$245 |
$178 |
|
Income tax expense |
92 |
68 |
|
Interest expense |
138 |
247 |
|
Earnings before interest and income tax expense |
475 |
493 |
|
Operating lease interest1 |
85 |
87 |
|
Adjusted net operating profit |
560 |
580 |
|
Estimated income tax expense2 |
(152) |
(159) |
|
Adjusted net operating profit after tax |
$408 |
$421 |
|
Average total assets |
$9,069 |
$9,301 |
|
Average deferred property incentives in excess of ROU assets3 |
(197) |
(232) |
|
Average non-interest bearing current liabilities |
(3,185) |
(3,352) |
|
Average invested capital |
$5,687 |
$5,717 |
|
Return on assets |
2.7 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
1.9 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
Adjusted ROIC |
7.2 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
7.4 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} |
|
1 |
Operating lease interest is a component of operating lease cost recorded in occupancy costs. We add back operating lease interest for purposes of calculating adjusted net operating profit for consistency with the treatment of interest expense on our debt. |
|
2 |
Estimated income tax expense is calculated by multiplying the adjusted net operating profit by the effective tax rate for the trailing twelve month periods ended January 28, 2023 and January 29, 2022. The effective tax rate is calculated by dividing income tax expense by earnings before income taxes for the same trailing twelve month periods. |
|
3 |
For leases with property incentives that exceed the ROU assets, we reclassify the amount from assets to other current liabilities and other liabilities on the Consolidated Balance Sheets. The current and non-current amounts are used to reduce average total assets above, as this better reflects how we manage our business. |
NORDSTROM, INC.
ADJUSTED DEBT TO EBITDAR (NON-GAAP FINANCIAL MEASURE)
(unaudited; dollar amounts in millions)
Adjusted debt to earnings before interest, income taxes, depreciation, amortization and rent (“EBITDAR”) is one of our key financial metrics and we believe that our debt levels are best analyzed using this measure, as it provides a reflection of our creditworthiness which could impact our credit ratings and borrowing costs. This metric is calculated in accordance with the updates in our new Revolver covenant and is a key component in assessing whether our revolving credit facility is secured or unsecured, as well as our ability to make dividend payments and share repurchases. Our goal is to manage debt levels to achieve and maintain investment-grade credit ratings while operating with an efficient capital structure.
Adjusted debt to EBITDAR is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for, debt to net earnings, net earnings, debt or other GAAP financial measures. Our method of calculating a non-GAAP financial measure may differ from other companies’ methods and therefore may not be comparable to those used by other companies. The financial measure calculated under GAAP which is most directly comparable to Adjusted debt to EBITDAR is debt to net earnings. The following shows the components to reconcile the debt to net earnings calculation to Adjusted debt to EBITDAR:
|
January 28, 2023 |
|
|
Debt |
$2,856 |
|
Operating lease liabilities |
1,784 |
|
Adjusted debt |
$4,640 |
|
Four Quarters Ended January 28, 2023 |
|
|
Net earnings |
$245 |
|
Income tax expense |
92 |
|
Interest expense, net |
128 |
|
Earnings before interest and income taxes |
$465 |
|
Depreciation and amortization expenses |
604 |
|
Operating lease cost1 |
280 |
|
Amortization of developer reimbursements2 |
72 |
|
Other Revolver covenant adjustments3 |
61 |
|
Adjusted EBITDAR |
$1,482 |
|
Debt to Net Earnings |
11.6 |
|
Adjusted debt to EBITDAR |
3.1 |
|
1 |
Operating lease cost is fixed rent expense, including fixed comment area maintenance expense, net of developer reimbursement amortization. |
|
2 |
Amortization of developer reimbursements is a non-cash reduction of operating lease cost and is therefore added back to operating lease cost for purposes of our Revolver covenant calculation. |
|
3 |
Other adjusting items to reconcile net earnings to Adjusted EBITDAR as defined by our Revolver covenant include interest income, certain non-cash charges and other gains and losses where relevant. For the four quarters ended January 28, 2023, other Revolver covenant adjustments primarily included costs associated with a supply chain technology and related asset impairment and the wind-down of Trunk Club, partially offset by a gain on sale of the Company’s interest in a corporate office building. |
NORDSTROM, INC.
FREE CASH FLOW (NON-GAAP FINANCIAL MEASURE)
(unaudited; amounts in millions)
Free Cash Flow is one of our key liquidity measures and, when used in conjunction with GAAP measures, we believe it provides investors with a meaningful analysis of our ability to generate cash from our business.
Free Cash Flow is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for, operating cash flows or other financial measures prepared in accordance with GAAP. Our method of calculating a non-GAAP financial measure may differ from other companies’ methods and therefore may not be comparable to those used by other companies. The financial measure calculated under GAAP which is most directly comparable to Free Cash Flow is net cash provided by operating activities. The following is a reconciliation of net cash provided by operating activities to Free Cash Flow:
|
Year Ended |
||
|
January 28, 2023 |
January 29, 2022 |
|
|
Net cash provided by operating activities |
$946 |
$705 |
|
Capital expenditures |
(473) |
(506) |
|
Change in cash book overdrafts |
(14) |
(32) |
|
Free Cash Flow |
$459 |
$167 |
SOURCE Nordstrom, Inc.
Embark Technology shuts down | Automotive News
Self-driving truck enterprise Embark Know-how is shutting down.
The corporation announced its closure Friday in an email from CEO Alex Rodrigues to Embark workers.
This is the second current major failure of autonomous technological know-how business. Argo AI Inc. folded in October right after its key backers Ford Motor Co. and Volkswagen determined to pull the plug on the autonomous auto technological innovation startup.
Rodrigues cited an inability to increase money and delays in “the prospect of scaled industrial deployment” of autonomous trucking for the closure.
“I am producing to you nowadays with a major heart. The very last nine months have been tough for the autonomous trucking business, and for Embark — the funds markets have turned their backs on pre-earnings firms,” Rodrigues said.
“In hard times, it is the total firm’s task to be adaptable and optimistic in pursuing a from time to time-altering course — and it is the work of the CEO to navigate the troubles and make sure individuals instructions ultimately get the group to the other facet. You held up your stop of that bargain, I was not equipped to maintain up mine — for that I am profoundly sorry,” he wrote.
The company is laying of 70 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of its workforce and shuttering workplaces in Southern California and Houston. The remaining 30 percent will stay on to execute the San Francisco company’s wind down and sale of property.
The firm claimed in an SEC doc submitted Friday that its steps have an affect on 230 workers. But it did not deliver a range for its complete employment. The organization shown its headcount at 251 in a November SEC document.
Employees will be paid as a result of June 2. Clinical gains will go on until Aug. 31.
Embark’s prior community announcement centered on growing its footprint.
A year back, the firm mentioned it has partnered with serious estate expense agency Alterra House Team to identify places across the Sun Belt that could be used as transfer points for autonomous trucking.
Embark and other self-driving technological innovation businesses have labored on a business product the place human drivers would shuttle freight to highway adjacent hubs. An autonomous truck would then travel the freight hundreds of miles on a digitally mapped interstate to an additional hub, the place a human would yet again get the wheel for shipping and delivery.
Embark formerly mentioned the procedure would be in spot subsequent calendar year, but technical hurdles have stretched out the timeline for the business enterprise.
Embark also has engaged in intensive screening of robotic trucks in snowy situations, amongst the most difficult of autonomous driving responsibilities.