16 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. OVERVIEW We are confident in our ability to execute our customer strategy as we evolve with customers and continue to leverage capabilities across all  channels to serve customers on their terms. To enhance the customer experience, we continue to make investments in our stores in new  markets such as Canada, Puerto Rico and Manhattan, in our ecommerce and fulfillment capabilities and in technology to support growth  across all channels. We believe these investments in our customer strategy will help us achieve long-term top-quartile shareholder returns  through high single-digit total sales growth and mid-teens Return on Invested Capital. Our credit business, through our Nordstrom Rewards program, continues to play an important role in attracting new customers and  deepening our engagement with existing customers. The program contributes to our overall results, with members shopping more frequently  and spending more on average than non-members. For the third consecutive year, we opened over one million new accounts. With over four  million active members, 2014 sales from members represented approximately 40% of our sales. Nordstrom.com finished its fifth consecutive year of approximately 20% or more comparable sales growth, with a key driver being increased  merchandise selection. In 2015, we plan to open our third fulfillment center, located in Pennsylvania, which will enhance the customer  experience through faster delivery. Furthermore, we have extended our full-price offering with our acquisition of Trunk Club, a high-growth  business offering a new approach to personalized service.  Our online businesses continue to be our fastest-growing channels. In the spring of 2014, we expanded our capabilities through the launch of  Nordstromrack.com, providing a seamless integration with HauteLook. We more than doubled our merchandise selection, which accelerated  growth in this channel in the second half of 2014. Demonstrating synergies across our businesses, we enabled customers to return  purchases from HauteLook and Nordstromrack.com to any of our Nordstrom Rack stores, which drove nearly one million incremental trips to  Nordstrom Rack stores.  At Nordstrom Rack, we offer customers great brands at great prices, with 48 of the top 50 full-line brands represented. We opened 27  Nordstrom Rack stores in 2014, a record number of openings, contributing to Nordstrom Rack’s total sales growth of 17%.  In 2014, we opened our first full-line store in Canada in Calgary, Alberta, reflecting a multi-year effort from our team to address the unique  challenges of crossing the border. With our store outperforming our expectations, we are encouraged with our customers’ response in this  market. We are looking forward to opening stores in 2015 in Ottawa, Ontario and Vancouver, British Columbia. In the U.S. we increased our  presence with two full-line stores in The Woodlands, Texas and Jacksonville, Florida. In 2015, we plan to open three full-line stores in Puerto  Rico, Minneapolis, Minnesota and Milwaukee, Wisconsin. Our partnership with vendors and brands enhances our product offering. We offer Topshop merchandise at 53 full-line stores and online, with  plans to reach over 80 stores in 2015. Our new partnership with Madewell in 2015, initially available at 15 of our stores and online, is another  way to provide sought-after brands that appeal to new and existing customers. We considered 2014 a watershed year in our company history, with our successful entry into Canada, continued expansion of our Nordstrom  Rack business through store growth, the launch of Nordstromrack.com and the acquisition of Trunk Club. Our performance in 2014 reflected  continued progress in executing our customer strategy through investments to drive growth across channels. We achieved total net sales  growth of 7.8%, adding nearly $1 billion to our top-line and delivering record sales and earnings per diluted share. Our financial position  remains strong and this marked the sixth consecutive year we generated over $1 billion in cash flow from operations.  We continue to see the ongoing evolution of retail, with increasing customer interaction between our stores and ecommerce. We are making  progress to meet customer expectations of a personalized experience that merges the richness of stores with the convenience of online.  Because the customer views us simply as Nordstrom, we believe there is tremendous value in strengthening our platform for the customer  experience that encompasses full-price, off-price, in-store and online. While each channel represents a substantial growth opportunity, there  are significant synergies across channels to create a unique customer experience to gain market share.  Nordstrom is a leading fashion specialty retailer offering apparel, shoes, cosmetics and accessories for women, men and children. We offer  an extensive selection of high-quality brand-name and private label merchandise through our various channels: “Nordstrom” branded full-line  stores and online store at Nordstrom.com, Nordstrom Rack stores, Nordstromrack.com and HauteLook and other retail channels, including  Trunk Club showrooms and TrunkClub.com, our Jeffrey boutiques and our clearance store that operates under the name “Last Chance.” As  of January 31, 2015, our stores are located in 38 states throughout the United States and in one province in Canada. In addition, we offer our  customers a Nordstrom Rewards ™  loyalty program along with a variety of payment products and services, including credit and debit cards. Dollar, share and square footage amounts in millions except percentages, per share and per square foot amounts