Now for the bad news. Same-store sales, or comps, were up just 2.2% during the quarter and are now expected to rise just 3%-4% for the full year. While the company's target customer is less effected by the slowing economy, management remains conservative with its outlook for the holiday season.

On the bright side, Nordstrom is entering the holidays with healthy inventory levels, a crucial point that makes the company stand out among many of its competitors.

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