Nordstrom, Inc., is a fashion specialty retailer offering a wide selection of high-quality apparel, shoes, and accessories for women, men, and children in the United States through 150 stores located in 27 states. The following operating data (in thousands) were taken from 10K filings with the Securities and Exchange Commission:

1. Compute gross profit as a percent of net sales for each year. Round to one decimal place.
2. Compute operating income as a percent of net sales for each year. Round to one decimal place.
3. Based upon (1) and (2), comment on Nordstrom€™s operatingperformance.

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For Year Ending January 31 Net sales Cost of goods sold Gross profit Selling, general, admin. exp. ,943,715 Operating income 2004 $6,491,673 4,213,955 $2,277,718 2003 $5,975,076 3,971,372 $2,003,704 1,813,968 $ 189,736 2002 $5,634,130 3,765,859 $1,868,271 1.722,635 145,636 334,003