ed 8.5 percent. This is an important figure since it is indicative of customer loyalty. Gross profit increased by 1.5 percentage points from 2003 to 2004, a fact that management attributes to better merchandise management and increased sales growth. In addition, the company improved its inventory management as evidenced by an inventory turnover rate that increased from 4.1 to 4.5. Pre-tax earnings increased from 6.2 percent in 2003 to 9.1 percent in 2004, a substantial increase in a highly competitive industry and one which management uses to illustrate that the company is performing well (2004 Nordstrom Annual Report 17).
Not surprising, the company is highly dependent on women for its revenue. Women's fashions (including apparel and accessories) and cosmetics together accounted for more than half of the company's sales. While it can be expected that men made some of these purchases, it is likely that women were making the majority of these purcha
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