Nordstrom reported fourth-quarter earnings of $212 million, or 92 cents a share, beating the mean estimate of analysts polled by Thomson Financial of 88 cents.
In the same period a year earlier, the company posted earnings of $232 million, or 89 cents a share.
Sales for the three months ended Feb. 2 fell 4.4 percent to $2.51 billion with same-store sales declining 0.7 percent. Analysts had expected sales of $2.53 billion for the quarter.
The Seattle-based fashion specialty retailer said it plans to open seven additional full-line stores in 2008.
Nordstrom also said it expects first-quarter per-share profit of 49 cents to 54 cents and a same-store sales decline of 3 percent to 5 percent. Analysts are looking for first-quarter earnings of 59 cents a share.
Shares of Nordstrom were down more than 1 percent in extending trading Monday after finishing regular hours up 2.7 percent at $36.98.