NEW YORK (AP) - THE QUARTER: Nordstrom Inc. said Thursday its first-quarter profit rose a slim 2.7 percent, even as its net sales rose almost 14 percent. At issue was the upscale department store chain's investment in initiatives like free shipping, which drew shoppers but hurt profit margins.

CUSTOMER SERVICE REDEFINED: Shoppers armed with smart phones and tablets are redefining customer service. So Nordstrom, considered the industry standard in customer service, is embracing new initiatives to hold onto shoppers.

THE DOWNSIDE: Investors pushed Nordstrom's shares down more than 5 percent in after-hours trading because results fell short of Wall Street's expectations. Nordstrom kept its full-year earnings guidance intact.