Nordstrom, Inc. (NYSE:JWN) announced today that its board has authorized the repurchase of up to $1 billion of the luxury retailer’s outstanding shares through March 1, 2016.

Nordstrom

The retailer anticipates tapping cash on hand for the buybacks.

Nordstrom’s board sets $1 billion buyback

Nordstrom, Inc. (NYSE:JWN) is a Seattle, Washington-based American high-end fashion retailer that sells clothing, shoes and accessories for men, women and children. The luxury retailer has 117 full-line stores and 151 Nordstrom Rack stores in 36 states and serves customers on Nordstrom.com in over 44 countries.

The luxury retailer also serves customers through Nordstromrack.com, online private sale site HauteLook and Trunk Club, a personalized clothing service for men.

The leading fashion specialty retailer announced that its board of directors has authorized a repurchase program of up to $1 billion of the company’s outstanding common stock, through March 1, 2016. The retailer intends to fund the repurchase program from existing cash on hand.

That said, the actual number and timing of share repurchases has not been spelled out.

Earlier buyback program expires in 2015

Nordstrom indicated that the total amount of shares repurchased and other details would be subject to market conditions and applicable Securities and Exchange Commission rules.

The retailer clarified that the new buyback program announced today is in addition to the company’s existing repurchase program that was approved by the board in February 2013. Nordstrom indicated that its existing repurchase program has $323 million in authorized funds remaining as of September 3, 2014, and will expire on March 1, 2015.

Enthused by the latest buyback announcement, Nordstrom’s stock gained $1.46, or 2.1% to 71.10 in premarket trading.

As reported earlier, Apple Inc. (NASDAQ:AAPL) is reportedly partnering with the luxury retailer for the launch of its mobile payment system, the iWallet. Nordstrom also reportedly upgraded its point-of-sale (POS) terminals for mobile systems, more specifically to work with iOS 8 and the upcoming iPhone 6.

In the event the deal is finalized, it seems that iPhone users will be able to shop in Nordstrom and use their devices to pay for the goods. Analysts have been waiting for several years for Apple to develop a mobile payment system which could be a new source of revenue.