P.M. BRIEFING : Nordstrom Earnings Down 34%
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SEATTLE — Nordstrom Inc. said today its earnings fell 34% in the fourth quarter due largely to higher merchandise markdowns and a $15-million charge for estimated back-wage claims by employees.
For the three-month period ended Jan. 31, Nordstrom’s profits fell to $31.4 million or 39 cents a share, from $47.5 million or 58 cents a share a year earlier. Revenues rose 12% to $857.5 million from $765.1 million.
The upscale department store, which recently came under fire for allegedly exploiting employees, said it has responded to a Washington State Department of Labor and Industry ruling by implementing additional record-keeping procedures to ensure that all employee work is properly recorded and compensated. The state labor agency ruled recently that Nordstrom had a pattern of making sales clerks work during off-hours and not paying them for it, after a complaint by Locals 367 and 1001 of the United Food and Commercial Workers.
Nordstrom spokesman John Goesling said the company has established a $15-million reserve for back-wage claims.
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