A NOTE FROM OUR  CHAIRMAN The hard work and performance of the team have  not gone unnoticed.  Fortune  magazine recently  published their annual ranking of the World’s  Most Admired Companies, listing Nordstrom at  #14. This is the seventh consecutive year we’ve  appeared in the Top 50. Additionally, Nordstrom  was ranked number one among all companies  for quality of product/services. Within our peer  group of general merchandisers, we ranked  number one overall as well as for innovation,  people management, use of corporate assets,  quality of management, long-term investment  value and quality of products/services. These  accolades reflect the vision, high achievement  and values we believe the company stands for,  and the dedication and hard work of more than  67,000 Nordstrom employees. Our top priority at Nordstrom is to improve  our customers’ experience, continuously.  This priority challenges us each day and is the  basis for our long-term strategy to provide  all Nordstrom customers with a best-in-class  experience centered on service, product and  capabilities, whenever and wherever they want.  This commitment to Nordstrom customers is,  in itself, the foundation of the deep and shared  commitment of the Board of Directors and  management to our shareholders—to enhance  shareholder value over the long run through  capital allocation discipline and to hold ourselves accountable for financial results. About a decade ago, we began investing  strategically in the company’s multi-channel  capabilities across stores and online to meet  the changing expectations of our customers.  Investing early in technology, merchandising  and stores, as well as integrating the in-store and  online experience, helped position the company  to achieve exceptional growth and superior  returns. For the last several years, we further  accelerated our level of investment to fuel growth across all our businesses—full-price,  off-price, stores and online—to help Nordstrom  deliver strong results this year and support  profitable growth for years to come. We expect  these investments to drive long-term shareholder value. This past February, we were fortunate to add  Shellye Archambeau to the Board of Directors.  As the chief executive officer of MetricStream,  Inc., we believe Shellye enhances an already  strong Board that is deeply committed to the  highest standards of ethics, accountability and governance. As we look to the future, we know that change  will be a constant and that the Nordstrom strategy  must evolve with customers’ expectations,  as must the means by which we enhance  shareholder value. However, most importantly,  the core principles upon which Nordstrom was  built will not change. Your Board of Directors  and your management team are committed  to maintaining the company’s unmatched  competitive spirit and unyielding commitment  to serve and value our customers, employees and  shareholders. Be assured that Nordstrom and  its wonderful employees are well positioned to  deliver the best customer experience possible  in ever-innovative ways, creating value for our  shareholders in the years to come. As the Board of Directors looks back on the  many accomplishments of 2014 and ahead to the  future, we support our executive management  team led by Blake, Pete and Erik Nordstrom.  We view 2014 to be a watershed moment in our  history, with the successful entry into Canada,  the expansion of the Rack business through store  growth, the launch of Nordstromrack.com and  the acquisition of Trunk Club. These milestones  are the outcome of our strategy, which is squarely  focused on serving customers on their terms and  delivering the Nordstrom experience they expect  from us. More importantly, our forward-thinking  strategy puts us on track to achieve our goal of  top-quartile shareholder return, driven by high  single-digit sales growth and mid-teens return  on invested capital. We believe this will lead us to  be a $20 billion business by 2020, with superior  returns, creating significant shareholder value.  On behalf of the entire Board of Directors, thank  you for your continued support of Nordstrom. Enrique Hernandez, Jr. Chairman OUR CUSTOMER, SUSAN F. “ I’ve found that Nordstrom  employees go to great lengths  to please the customer. That’s hard to find in most  stores these days. ” 10