Neiman Marcus Q3 Profit Up 13%

Neiman MarcusDallas—Amid various rumors that Neiman Marcus Group might launch an IPO or even be part of a merger with rival Saks Inc., the luxury retail company today reported its third quarter profit rose 13% as sales continued to grow.

For the quarter ended April 27, the parent to Neiman Marcus and Bergdorf Goodman stores posted net income of $70.8 million compared to $62.6 million a year ago. The latest quarter included debt-extinguishment losses of $15.6 million.

Net sales rose 3.8% to $1.1 billion. Comparable store sales increased 3.6%.

The company’s specialty retail division, which includes Neiman Marcus, Last Call and Bergdorf Goodman comprising some 78% of total sales, reported a 1% increase in sales. Meanwhile, its online sales rose 15%.

Operating earnings were $150.3 million compared to $146.6 million for the third quarter 2012.

In its report, Neiman Marcus Group said it had higher markdowns and promotional costs as a result of lower than expected customer demand.

Recent reports circulated that the company’s owners, private equity investors TPG Capital and Warburg Pincus LLC have been looking to possibly file to take the company public or sell out to another private equity firm.

Last week, The Wall Street Journal reported that Neiman Marcus turned down a purportedly proposal in which KKR & Co. would invest in rival Saks Inc. and merge it with Neiman Marcus Group.

 

 

 

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com