Net Sales (2014 vs. 2013) Net Sales (2013 vs. 2012) Retail Business Gross Profit In 2014, total company net sales increased 7.8%, which was attributable to the comparable sales increase of 4.0%. During the year, we  opened three Nordstrom full-line stores, including our first store in Canada, and 27 Nordstrom Rack stores. Additionally, as a result of the  acquisition of Trunk Club, we acquired four Trunk Club showrooms and opened one additional Trunk Club showroom in 2014. These  additions increased our square footage by 5.5% and represented 2.8% of our total net sales for 2014.  Nordstrom net sales, which consist of the U.S. full-line and Nordstrom.com businesses, were $9,678 in 2014, an increase of 3.8% compared  with 2013, with comparable sales up 3.6%. These increases reflected continued momentum in our Nordstrom.com channel. Both the number  of items sold and the average selling price increased on a comparable basis in 2014. Category highlights included Accessories, Cosmetics  and Men’s Apparel.  U.S. full-line net sales for 2014 were $7,682, a decrease of 0.3% compared with 2013 and comparable sales decreased by 0.5%. The top- performing geographic regions for full-line stores were the Southeast and Southwest.  Our Nordstrom.com, Nordstromrack.com and HauteLook channels continued to experience outsized growth. Nordstrom.com net sales  increased 23% and Nordstromrack.com and HauteLook net sales increased 22%, both driven by expanded merchandise selection and  ongoing technology investments to enhance the customer experience. Nordstrom Rack net sales increased $477, or 17%, compared with 2013, reflecting incremental volume from existing stores and the impact of  27 new stores since fiscal 2013. Comparable sales increased 3.8% for the year. Shoes and Accessories were the top-performing categories  for the year. On a comparable basis, the average selling price of Nordstrom Rack merchandise increased while the number of items sold was  flat.  Net sales for 2013 increased 3.4% compared with 2012, driven by a comparable sales increase of 2.5%, attributable to growth at  Nordstrom.com and Nordstrom Rack’s accelerated store expansion. During 2013, we opened 22 Nordstrom Rack stores and relocated one  Nordstrom full-line store and two Nordstrom Rack stores. These additions represented 1.6% of our total net sales for 2013 and increased our  square footage by 2.9%. The 53 rd  week in 2012 contributed approximately $162 in additional net sales. Nordstrom net sales for 2013 were $9,327, an increase of 1.0% compared with 2012, with comparable sales up 2.3%. Strong growth at  Nordstrom.com was partially offset by sales decreases at our full-line stores. Both the average selling price and the number of items sold  increased on a comparable basis in 2013 compared with 2012. Category highlights included Cosmetics, Men’s Shoes and Women’s Apparel.  Full-line net sales for 2013 were $7,705, a decrease of 3.3% compared with 2012, which was primarily driven by a comparable sales  decrease of 2.1% for the year. The top-performing geographic regions for full-line stores for 2013 were the Southwest and Southeast.  Nordstrom.com showed strong sales growth with net sales of $1,622, an increase of 28% compared with 2012, with comparable sales up  30% on a comparable 52-week basis. These increases were driven by expanded merchandise selection and ongoing technology  investments to enhance the customer experience. Nordstrom Rack net sales were $2,738, up 12.0% compared with 2012, primarily due to 37 new store openings in 2012 and 2013.  Comparable sales increased 2.7% for the year. Cosmetics and Shoes were the strongest-performing categories for the year. Both the  average selling price and the number of items sold increased on a comparable basis in 2013 compared with 2012. The following table summarizes the Retail Business gross profit: 1  Retailers do not uniformly record the costs of buying and occupancy and supply chain operations (freight, purchasing, receiving, distribution, etc.) between gross profit and  selling, general and administrative expense. As such, our gross profit and selling, general and administrative expenses and rates may not be comparable to other retailers’  expenses and rates. 2  Ending inventory includes pack and hold inventory of $222, $173 and $125 in 2014, 2013 and 2012, which represents strategic purchases of merchandise for upcoming selling  seasons. 3  Inventory turnover rate is calculated as annual cost of sales and related buying and occupancy costs (for all segments) divided by 4-quarter average inventory. Retailers do not  uniformly calculate inventory turnover as buying and occupancy costs may be included in selling, general and administrative expenses. As such, our inventory turnover rates  may not be comparable to other retailers.  Fiscal year 2014 2013 2012 Retail gross profit 1 $4,709 $4,434 $4,335 Retail gross profit as a % of net sales 35.9% 36.4% 36.9% Ending inventory per square foot 2 $64.05 $58.84 $53.77 Inventory turnover rate 3 4.67 5.07 5.37 Nordstrom, Inc. and subsidiaries 19