DEAR CUSTOMERS, EMPLOYEES AND SHAREHOLDERS, For 114 years, our focus has been on our customers. We have been most successful when we view our business  through their eyes. In today’s rapidly changing retail  landscape, this approach has never been more important, so our strategy remains squarely focused on serving  customers on their terms. Knowing customers increasingly  desire an experience that’s both personalized and convenient,  we continue to make investments that further integrate our  store and online experience to enable our customers to shop  seamlessly any way they choose. $13.1 billion IN TOTAL COMPANY SALES. WITH SALES GROWTH OF 7.8% AND COMPARABLE SALES INCREASE OF 4%, WE BEAT OUR OWN EXPECTATIONS. A RECORD 1 million STORE VISITS  FROM CUSTOMERS  RETURNING THEIR HAUTELOOK AND  NORDSTROMRACK.COM PURCHASES TO NORDSTROM RACK. MORE THAN 4 million NEW CUSTOMERS  SHOPPED AT NORDSTROM RACKGLYPH<emdash.case>THAT’S MORE THAN AT ANY OTHER CHANNEL. NEARLY IN NORDSTROM.COM SALES. THAT’S MORE THAN DOUBLE OUR SALES FROM JUST THREE YEARS AGO. $2 billion ALMOST 27  $^{NEW NORDSTROM RACK STORES.}$  PLUS, RACK SALES INCREASED 17% AND  RACK COMPARABLE SALES GAINED 3.8%. 1 million NEW MEMBERS  JOINED OUR NORDSTROM REWARDS™ PROGRAM  FOR THE THIRD YEAR IN A ROW. MORE THAN 3