Neman Marcus Inc. Posts Q3 Profit Jump

Dallas—Thanks to strong sales and improved margin, Neiman Marcus Inc. reported Tuesday a 35% increase in its third quarter profit.

For the quarter ended April 28, the parent of Neiman Marcus stores and Bergdorf Goodman reported a net profit of earnings were $62.6 million, compared to $46.2 million in the same quarter 2011.

As reported earlier, Neiman Marcus said third quarter revenue increased 7.5% to $1.06 billion. Comparable store sales at its Specialty Retail Stores, which include Neiman Marcus, Bergdorf Goodman and Last Call, were up 4.3%.

Strongest sales growth was reported at stores in the Southeast and Texas. Best performing categories included women’s contemporary sportswear and footwear, designer handbags, beauty and men’s.

Neiman Marcus Direct, which produces 80 catalogs annually and operate websites NeimanMarcus.com, BergdorfGoodman.com, LastCall.com, Cusp.com and Horchow.com, had a 17.5% growth in comparable sales. The top selling merchandise categories in the Direct Marketing segment included women’s apparel and handbags, jewelry, beauty and men’s.

Total company gross margin widened to 40.5% from 39.7%.

The company’s long-term debt load was down 2.7% to $3.8 billion. Interest expenses were down 14%.

Neiman Marcus Inc. carried a large debt load due to $5.1 billion leveraged buyout in 2005 by its owners TPG Capital and Warburg Pincus, LLC.

 

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