Dallas—Neiman Marcus Group today reported it swung into a first quarter loss due to more than $100 million in costs associated with the company’s sale in September.
For the quarter ended Nov. 2, the luxury retailer posted a loss of $13.1 million compared with a profit of $49.6 million a year earlier.
The quarter included other expenses of more than $113 million relating the $6 billion acquisition of Neiman Marcus by Canada Pension Plan Investment Board and Ares Management LLC. Excluding those expenses, operating earnings were $141.5 million.
To finance the sale, Neiman Marcus’ long-term debt grew to $4.7 billion from $2.7 billion. TPG Capital and Warburg Pincus were paid $3.39 billion for their equity in the company. The two investment firms acquired Neiman Marcus in 2005 in a $5.1 billion leveraged buyout.
Net sales rose 5.7% to $1.13 billion from $1.07 billion a year ago while comparable store sales were up 5.7%.
In the company’s specialty retail division, which includes Neiman Marcus, LastCall and Bergdorf Goodman stores, sales increased 4.5% to $889.3 million. Online revenue increased 10% to $239.8 million.