Nordstrom's outlook for 2009 is positive

Blake Nordstrom, president of the Seattle-based retailer that bears his family's name, said Tuesday he's cautiously optimistic about 2009, suggesting that business has leveled off after a sharp decline last year.

Speaking at the company's annual shareholder meeting in downtown Seattle, Nordstrom said he remains committed to a long-term, multipronged strategy that includes improving customer service both online and in stores, as well as keeping down expenses.

"We think that when this thing does turn around, we have an opportunity to gain market share," he said of the recession.

The company has opened two new full-line clothing stores this year, with a third scheduled for the fall. That's down from a total of eight openings last year.

Also, the company said Tuesday, it has signed a letter of intent to open its first store in San Juan, Puerto Rico, possibly in 2013 or 2014. Nordstrom said he expects to learn "a little more about the international customer," though there are no plans to expand outside the United States or its territories.

About 250 people attended Tuesday's meeting at Benaroya Hall, where the overall mood, including a handful of questions from the audience, seemed positive.

As usual, the company saluted two of its top-selling vendors with its annual Partners in Excellence Award. The recipients were Jimmy Choo, which sells high-end shoes, handbags and sunglasses, as well as Ugg Australia, a trendy shoe brand known for its sheepskin boots.

President of merchandising Peter Nordstrom noted that the company sold 1 million pairs of Ugg shoes last November and December. Broken down for the all-important month of December, he said the company sold 22,000 Ugg pairs a day, which translates to 1,800 an hour, or 30 a minute.

"It's really bringing people into stores at a difficult time," he said.

Joshua Schulman, CEO of London-based Jimmy Choo, said his company has sold 135 pairs of a certain $650 metallic pump through Nordstrom in the past two weeks, calling it an "exceptional performance."

"We've seen some leveling off this spring, and the mood is getting better," Schulman said. "When the product is right, and it makes an emotional connection, the customer is willing to buy."

Last week, Nordstrom reported a 32 percent decline in its first-quarter profit, though that was still better than Wall Street's expectation. Based on Tuesday's closing price of $22.93, Nordstrom's stock is up 72 percent so far this year — better than the 17 percent increase for the Standard & Poor's 500 Retailing Index.

Nordstrom "is building its business around the possibility that conditions may remain weak for some time. That said, things seemed upbeat" at Tuesday's meeting, said Dan Geiman, a retail analyst with McAdams Wright Ragen in Seattle.

"Things were looking pretty grim late last year and early this year. That has shifted a little bit," he said. "There's a few glimmers of optimism out there."

In other news, Nordstrom declared a quarterly dividend of 16 cents a share, as it did for each of the previous five quarters.

Amy Martinez: 206-464-2923 or amartinez@seattletimes.com